What does the term "Mortgage Rates" mean?

Mortgage rates are another term for the APR - i.e. the annual rate of interest on a loan. This is calculated as interest paid per unit of the amount outstanding. All mortgage rates are calculated in this way because it makes it easier for people to compare mortgage deals.

We beleive that when you're shopping around for the cheapest mortgage rates, you need to calculate the cost of a mortgage over different periods of time. You also need to take into consideration all payments, incentives and charges such as early redemption penalties. Your mortgage adviser will do this for you.

Incidentally, don't forget that most mortgages sell themselves based on a low initial rate of interest, but most interest rates are only set for a certain period of time (1 - 5 years) and at some stage will revert to the standard rate. The best mortgage deal may not be the one with the lowest initial rate at the outset, so you need to look beyond that to see what the interest rate it reverts to, and what other charges could be incurred.