Welcome to our Mortgage Glossary. Here you will find definitions for more commonly used mortgage terms, making the jargon clearer. If you're unsure of any words or phrases, simply use the guide below.
A variable rate mortgage has an interest rate that can go up or down. If the mortgage interest rate falls, your monthly mortgage repayment reduces but if the rate goes up, so does your monthly repayment. All lenders have a standard variable mortgage interest rate on which they base their variable mortgage products. The lender will decide when to increase or decrease this standard rate, usually (but not always) based on the movement of the Bank of England's base rate.