Mortgage Types
Offset - A method of money management whereby the credit balances held in your current and/or savings accounts can be used to reduce the amount of the mortgage on which interest is charged. This can potentially reduce the total amount of interest paid and allow the mortgage to be repaid more quickly.
Discounted - An interest rate set at an amount 'discounted' below the lender's standard rate. This will only apply for a set period.
Fixed - The mortgage repayments and interest rates are fixed from the start of the mortgage. The interest rate will remain the same regardless of the movement in interest rates.
Capped - A capped rate mortgage is a variable rate mortgage, which is capped to ensure the rate does not exceed a certain limit.
Tracker - The interest rate follows the market rate (for example, Bank of England Base Rate or LIBOR) plus or minus a certain margin.
Variable - The mortgage repayments and interest rates may increase or decrease throughout the term of the mortgage depending on the market rate (for example, Bank of England Base Rate or LIBOR).
I dont understand the difference between Tracker and Variable.
And have no F'ing idea about the first one, does it mean if you leave the value of your property in an account then rates are massivly reduced?