When we provide mortgage advice our independent mortgage advisers take time to explain the advantages and disadvantages associated with each type of interest rate highlighting the costs and penalties normally associated with each type of rate.

Fixed rates provide stability Variable rates normally have no tie in Flexible mortgages can cost less

Statutory Notice
Think carefully before securing debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it. The actual rate available will depend upon your circumstances. Ask for a personalised illustration. The overall cost for comparison is 7.3% APR.

Variable interest rates
Known as standard variable rate mortgages the rate can change at any time. The interest rate on variable rate mortgages moves up and down in line with the rate set by individual mortgage lenders. Variable rates normally do not have any entry costs, known as booking fees, or exit penalties, known as tie ins.

Discounted interest rates
The rate is set in the same way as a standard variable interest rate mortgage however the lender will offer a discount for a set period of time. Discounted rates do not normally have a booking fee but they will usually have exit penalties within the period of time the discount is applied.

Tracker interest rates
The basic interest rate on tracker rate mortgages moves up and down in line with the rate set on a monthly basis by the Bank of England. Each mortgage lender will then apply its own discount or a premium to this rate. Tracker rates normally have a booking fees and exit penalties if the tracker rate is offered with a discount.

Capped interest rates
The rate cap offered for capped rate mortgages is set by individual mortgage lenders. Linked to a standard variable rate mortgage the mortgage lender will offer a maximum upper limit through which the lender will not increase the interest rate. Capped rates normally have a booking fee and exit penalties within the capped rate period.

Fixed interest rates
The interest rate for fixed rate mortgages is set by each individual mortgage lender. The interest rate is fixed for a set period of time, normally 1,2,3,5 or 10 years. Fixed rates normally have a booking fee and exit penalties within the fixed rate period. Short term, low rate fixed mortgages, normally also extend this exit penalty passed the end of the fixed rate period, tying you in on the standard variable rate for an extended period of time.

True costs
As there are many different types of mortgage available and with application costs varying between providers it can be difficult to assess the best value deal. As part of our mortgage advice service our mortgage advisers are able to calculate the true cost of borrowing, accounting for all fees and the actual interest rate, to provide you with the best total mortgage package.

Learn more about interest rates in our mortgage glossary.

To request advice
Complete our online mortgage advice enquiry form or call one of our specialist independent mortgage advisers to receive free mortgage advice. As an internet based firm of independent financial advisers we provide advice over the telephone, via email and through the post. Dealing with you in this way means we can provide independent mortgage advice without charging you a broker fee.

Help & advice
There are many different options to consider when choosing a mortgage and it makes sense to take advice from a qualified mortgage specialist who is independent and can offer you products and services from the whole of the market place. Please call one of our independent advisers or contact us to discuss the different options available to you and to request a quote on the best mortgage for you.