Best Buy Mortgages- Discount Variable Rates

The table below shows the latest best rates for UK discounted variable rate mortgages.

Read more about discounted variable rate mortgages ____See All Best Buy Tables

Loan to Value.

This is the percentage which shows the size of your mortgage vs the property's value.

For example, if your mortgage is £80,000 and the property's value is £100,000 the loan to value is 80%.

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Mortgage Lender

This shows the company who is offering the mortgage loan. It could be any financial institution that offers and/or arranges mortgages. They could be an insurance company, a building society, a bank, a friendly society, unit trust managers and even supermarkets.

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Rate

This shows the interest rate which will be applied to the mortgage loan.

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Period

This is the length of time the interest rate applies.

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Rate Reverts To

This is the variable interest rate this mortgage reverts to after the period

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Fee

The arrangement fee. This is what the lender charges for setting up the mortgage and is is usually payable on completion of the mortgage.

It usually costs between £100 to £300 - or can be "free".

Be careful here: This fee may be payable, even if your application doesn't succeed. And there may be other charges for example an additional Application or Administartion etc Fee. So check this beforehand.

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Redemption

When you take out a mortgage you have an agreement with the lender. This covers the amount you repay and is set for a particular period. The figure in the table shows the particular period.

For example you may have a mortgage for a three year fixed interest rate of 5%. If you want to get out of this deal before the three years is up you'd probably have to pay a redemption penalty.

This is a charge which supposedly compensates the mortgage lender for the time and expense of your leaving.

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