This offers you a mortgage at the lender's basic mortgage interest rate, commonly known as the Standard Variable Rate (SVR), which can fluctuate with interest rate changes made by the Bank of England.
Plus Points: Usually there are no penalties for cancellation and for transferring to another mortgage product or to another lender (known as redemption penalty and lock-in periods), giving you the flexibility to change your mortgage type or move to a different lender.
Points to Watch: Interest rates can go up as well as down. When it rises sharply, your interest payment instalments may increase substantially.
2 standard repayment methods for Variable Rate Mortgages:
