Mortgage Schemes

Fixed Rates

This is a mortgage rate where the interest rate is agreed at the start of the mortgage and will not change during the term of the fixed rate.

This means that you know exactly how much your monthly payment will be each month during the fixed rate period.

Tracker Rates

This is a variable rate mortgage where the interest rate is linked directly to the Bank of England Base Rate. Therefore, when the Base Rate changes, the rate on your tracker mortgage changes by the same amount.

For example, if the Base Rate increases by 0.25% then your mortgage payments will increase by 0.25%.

Capped Rate

This is a type of loan where a maximum rate of interest is set at the start of the mortgage term. During the capped rate period the interest rate can fall below the capped rate but will never rise above it.

What this means for you the borrower is that you know how high the mortgage payments could rise but are guaranteed the rate will not go any higher, therefore making home loan budgeting easier.

Discount Rate

A discounted rate mortgage offers you reduced repayments for a given term. This interest rate is discounted from the published lender standard variable rate, for an agreed period from the start of the mortgage.

What this means for you the borrower is that you are guaranteed to pay a set amount below the standard variable rate for the period of the discount. The standard rate can go up and down, but the discount amount remains fixed during the agreed period.

Standard Variable Rate

This rate can go down as well as up during the course of your mortgage and is usually determined by the lender. It is sometimes linked to the Bank of England Base Rate but not always.

A mortgage is a loan secured against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.

Call Foundation Mortgages Bedford on 01234 856991 or by using the contact form to get fair and impartial advice to find the most suitable mortgage for your circumstances.


Simply visit our contact page and we will call you to discuss your mortgage and or protection requirements.

The levels and bases of taxation and UK interest rates are subject to change.

The guidance contained within this website is subject to the UK regulatory regime and is therefore primarily targeted at consumers based in the UK. Principal: Peter Martin Dronfield.