This type of mortgage means that the borrower pays “the going rate” that the Lender sets and it is the rate that most borrowers eventually end up on.

The main advantage of this is that at anytime you can redeem your mortgage without suffering any penalties. (There of course may be administration costs).

Obviously the drawback with this is that when the mortgage rates are high (a la late 80s) your monthly repayments will reflect this, to all intents it is a good mortgage while rates are low but there is no protection when rates start to move upwards.

Please Contact Us for more information.