Mortgage Rate

CSS has been turned off in your browser. Please enable CSS and reload this page.

The difference between base rates, fixed rates, tracker rates and variable rates

All mortgages are based on the Bank of England base rate, which is why homeowners get scared if the Bank announces a rate rise. However, the mortgage rate could be very different from the base rate, and it's important to compare like for like.

Apply for a free quote

Interest rate hikes doesn't mean your mortgage rate although any change in interest rates will affect the mortgage rate eventually. It means the Bank of England base rate is the interest rate at which banks can borrow money, and while mortgages follow this rate they don't do so exactly.

Some lenders will charge a mortgage rate that's 1% above the base rate, others 2% and so on. Changes in the base rate can also take time to affect the mortgage rate, so a rate cut won't necessarily affect this month's mortgage payment.

Apply for a free quote