Heres the first mortgage term you should learn Standard Variable Rate, or SVR. This is the interest rate you will be paying on the total amount you are borrowing. It is usually expressed as a percentage, and is different from an APR (Annual Percentage Rate). An APR includes all costs associated with the loan, such as interest, fees, any compulsory insurances etc.
While interest rates can vary quite widely across the board, all lenders will have a Standard Variable Rate. Its the default rate for their mortgages, and can provide a good indication of whether they are offering good deals. Comparing different lenders SVRs is one way to get an idea of who has lower rates generally though there will be exceptions to this rule.
This rate fluctuates, going up or down according to the economy and the lender. The biggest factor that effects SVRs is the Base Rate set by the Bank of England. In recent years this has been kept relatively low, and mortgage interest rates have been particularly good for borrowers. However, this could change and you should bear in mind that rates could go up in the future.
Many mortgages start off with special introductory rates, and then...
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