Your guide to
buying your home - Interest rates
The
Annual Percentage Rate (APR)
This
is a way of assessing the total cost of borrowing when taking into account
repayment terms and additional costs involved in setting up the loan
and is generally regarded as being the fairest way of comparing rates.
Standard
Variable Rate
This is the standard rate of
interest charged by the lender, which can increase or decrease, affecting
the monthly repayments you are required to make.
Discounted rate
Some lenders offer discounts
on the standard interest rates for an initial period of the loan, after
which normal rates will apply. Special conditions are sometimes applied
to such loans and you should take care in assessing the benefits to
be gained from entering into this type of arrangement.
Fixed rate
Interest rates are sometimes
fixed for a set period after which they return to the standard variable
rate.
Mortgage rates can go up or
down and can significantly affect the amount you are required to pay
each month. If you do not keep up your payments you may lose your home
.
