What happens if interest rates change?

It all depends on what sort of mortgage you have. For example, a variable rate mortgage, a fixed rate mortgage, a capped mortgage or even a cap and collar mortgage.

Most people have some form of variable rate mortgage and as mortgage rates move broadly in line with the Bank of England's Base Rate, if Base Rates move up then so will your mortgage rate an vice versa. This in turn means that your monthly mortgage repayments will vary.

Deciding whether to have a fixed or variable rate mortgage is one of the most significant decisions that you will make when arranging your mortgage. To ensure you make the right decision, we advise you to seek guidance from a fully qualified, independant mortgage adviser before signing a mortgage contract.