Discounted Variable Rate:
Rates are discounted from the standard variable rate for a fixed period, following which they return to the standard variable rate. This enables the borrower to reduce their monthly commitments during the first few years of their mortgage.

Fixed Rate:
Rates are fixed at a certain level for a fixed period. If interest rates fall below the fixed rate during the fixed rate period, the borrower will continue to pay the higher monthly payments. This enables the borrower to keep their monthly payments down in the early years, and to be aware of their exact commitment.

Tracker:
Also known as a base rate tracker. The rate tracks the Bank of England base rate. When
the base rate changes, the amount that you pay changes too.

End of Discounted or Fixed Period:
At the end of the discounted or fixed rate period, the interest rate will revert to the current variable rate, which may be substantially higher and involve substantial increases in the monthly payments. There may be financial penalties for not staying with the lender for a certain time after the end of the fixed period.

Variable:
This is the lender’s standard product. The rate usually moves in line with the Bank of England’s base rate, although it may also change at other times.