This where a lender offers a mortgage at an interest rate that is tied into, but a percentage above, the Bank of England base rate, as opposed to a percentage below their own individual standard variable rate. This means the change in interest rate is immediate if the Bank of England alters its rate. With a discount rate, some lenders have been criticised for delaying or not passing on any drop in the interest rate, but applying any increase immediately.
A mortgage with an interest rate (a set margin above) that follows the movement of either the Bank of England's or lender's base rate which can go up or down depending on the decisions of the Bank of England Monetary Committee.
This kind of mortage has an interest rate which follows the Bank of England's base rate. This means that your monthly repayments go up when the base rate goes up, and go down when the base rate goes d (More)
Is a mortgage product linked to a benchmark interest rate, such as the Bank of England base rate, usually for a set period of time. The rate you pay moves up and down in line with the benchmark selected. At the end of the set period, the Standard Variable Rate will apply.