Mortgage Products

There are several terms used to describe the interest rates you pay on a mortgage, and the key terms are as follows:

Standard Variable Rate (SVR) - The SVR is the lenders standard rate. With a variable rate mortgage you are normally able to switch lenders at any time without being penalised. If you take out a mortgage that has a fixed, tracker or discounted rate once the set period of time ends the loan will usually revert to the Lenders SVR.

Fixed Rate -
A fixed rate mortgage allows you to repay interest at a fixed rate, irrespective of any interest rate fluctuations. In other words your monthly repayments will remain the same every month for a time period agreed between you and your lender. 

Tracker -
A tracker mortgages usually tracks any movement in an index specified by the lender, this for example could be the Bank of England Base Rate for a set period, so you will benefit from any falls in interest rates, but will also have to pay more each month should the rate increase.

Discount -
The discount mortgage rate is another variation of the standard variable rate. It provides a discount from the lenders SVR for a set period of time. The variable interest rate still fluctuates, meaning your monthly repayments may differ slightly from month to month, but the discount remains constant.

Fixed, Tracker and Discount rate mortgages often have early repayment charges so you need to be sure this is suitable for you for the foreseeable future. Furthermore, the lender may also charge a ‘booking/arrangement fee’ to apply for these types of mortgage.  You should ask your adviser to explain these in more detail, or ask for an illustration.

As a mortgage is secured against your home, it could be repossessed if you do not keep up the mortgage repayments

Steggles & Co Ltd, Financial Advisers, Arterial Road, Eastwood, Leigh-on-Sea, Essex SS9 4XX.
Tel: +44 (0)1702 511144. Email:
Authorised and Regulated by the Financial Conduct Authority. Registered in England and Wales Company No. 05199281.
Registered Office: ESW, 162-164 High Street, Rayleigh, Essex, SS6 7BF.
Registered with the DPA (Data Protection Act 1998) Registrar of Data Controllers Number Z873516X. Authorised and Regulated by the FCA.
The guidance and/or advice contained within this website is subject to the UK regulatory regime and is therefore targeted at consumers based within the UK, or UK ex-patriates.

Steggles & Co Ltd is Authorised and Regulated by the Financial Conduct Authority. Financial Services Register Number 403458.
Registered in England & Wales, Company Number 05199281. Registered Office address: BMW House, Arterial Road, Eastwood, Leigh-on-Sea, Essex, SS9 4XX. Trading address: Same as registered. Telephone: 01702 511144
The guidance and or advice contained within this website is subject to the UK regulatory regime and is therefore primarily targeted to customers in the UK.
© 2017 Steggles & Co Ltd | Regulatory Information | Login | Cookie Policy