Looking at A Standard Variable Mortgage Rate

If you are a first-time buyer you might not be aware of the various types of mortgage and rates that you are eligible for. Central Mortgages wants to help you choose the right path for your circumstances and with that letbs take a look at variable rate mortgages.

Put simply, a standard variable mortgage rate means that your payments can go up or down depending in the changes of interest rates. It isnbt a set percentage above the Base Rate set by the Bank of England, and when interest rates change your lender can choose whether to increase the rate, keep it the same, or decrease it.

A lender is not obliged to change anything to do with your rates, so for instance when interest rates are lower, you might not necessarily see a change in your monthly payments to reflect that. One of the positive things about a variable rate mortgage for first time buyers is that arrangement and administrative fees tend to be lower than those associated with other types of mortgages. There tends to be no additional charges for early repayment, which does allow for flexibility in the long-term.

Despite these positives the rates themselves are generally higher than those with a discounted rate or a tracker mortgages and if you are looking for a mortgage as a first time buyer it might be more appropriate to start your search there.

For information on a wide range of mortgages and how we can help you choose the right path for your situation contact Central Mortgages today. Our friendly team will be happy to assist.