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Floating interest rates
With a floating interest rate your payments and interest rate can change during your loan term.
With a floating interest rate you can- change your payments at any time, at no extra charge
- pay off lump sums when you want, at no extra charge
- pay back your loan early, at no extra charge
- have your income paid into Choices and use it as your everyday account
If the interest rates change- we’ll let you know in advance if it changes and what your payment options are
- if the rates go down you can keep payments the same and reduce your mortgage faster
- if rates go up your payments go up so your mortgage is paid off within your loan term
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Capped interest rates
A capped interest rate can't go higher than a certain level for one year. It can, however, come down.
With a capped interest rate you - have certainty about your mortgage payments
- get the benefit of any drop in interest rates
- can change your payments or pay all or part of your mortgage back at any time
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Fixed interest rates
With a fixed interest rate your payments and the interest rate stay the same for a set time. Extra costs may be incurred if you pay back all or part of your fixed interest rate mortgage early.
With a fixed interest rate you- know what your mortgage payments will be
- can fix your interest rate for terms between six months and five years
- can increase regular payments by up to 20% of your minimum repayment
At the end of your fixed interest rate loan term - your mortgage will convert to the floating interest rate
- or you can choose a new fixed period
> fixed interest rate loan prepayment costs |
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Combination interest rates
Choose any combination of floating, capped or fixed interest rates. There’s no limit on how much of your mortgage can be on any rate. |
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