We will answer all your questions and explain anything you don’t understand, however it is still helpful to know some of the jargon.
The Dictionary & Useful Links
Helping you understand
Please be aware these links are to external websites.
Lucky Mortgages are not responsible for the content of external websites
Mortgage Redemption Statement
A mortgage redemption statement can be obtained from your current mortgage provider which shows you exactly what your current outstanding balance is. The redemption statement will include your outstanding balance, early repayment charges and interest owed.
Discounted Rate, Tracker Rate and Standard Variable Rate (SVR)
Discounted Rate: It is a type of variable rate, however, the lender offers a discount on its standard variable rate of a fixed period of time – for example, 2 years, 3 years or 5 years.
Tracker Rate: It is also a type of variable rate, however, it ‘tracks’ a base rate (usually follows the Bank of England’s base rate) – for example, a tracker mortgage offers the Bank of England’s base rate plus 1.00%; so if the base rate currently is at 1.25%, the rate you would pay would be 2.25%.
Standard Variable Rate (SVR): As its name suggests, it is the lender’s standard variable interest rate without any discount or offers. Borrowers are normally moved on to SVR once their existing deal / rate ends.
