How to choose the UK loan interest rate?

The Bank of England's benchmark exchange rate has been at historical levels for a long time (see chart below), in response to the impact of the new coronary pneumonia epidemic on the economy, the benchmark interest rate is even more it's down to an all-time low.

There are two main types of loan interest rates:

● Fixed rate

will not be affected by changes in the Bank of England's benchmark interest rate; slip, can't profit.

Generally, you can choose a fixed period of 2,3,5 or 10 years, and when the fixed period ends, it will automatically switch to a floating rate.

● Tracker rate

according to the change of the Bank of England's benchmark interest rate, if the central bank's benchmark interest rate is lowered, the monthly payment will be reduced; improve.

For customers who want to make large prepayments, most follow-up rates for prepayments after 2 years are free of fines, while fixed rates the fine is often higher than the floating rate.

Generally, you can choose a 2,3-year tracking period, which will automatically switch to a floating rate at the end of the tracking period.

Above Source: English Loan Guide