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Fixed rate mortgages are normally calculated by finding out how much interest the bank has to pay to secure the money from the banks and offering that amount or above for the length of the mortgage term
This depends on what the Bank of England Base Interest Rate is, which governs the standard variable rate. If it is low, then the capped mortgage rate will be high enough to attract making some money for the mortgage lender whilst being low enough to attract customers.
The cashback mortgage interest rate will be higher than the normal interest rate charged to take account of the cashback that you receive.
A discounted mortgage is related to the standard variable mortgage rate, and will be low enough to bring in customers. It then goes up and down with the SVR.
With a flexible mortgage the interest rate would be set to take account of the flexible nature of the product, where over the life of the mortgage the lender may earn less interest.
With a current account mortgage the interest rate takes account of the fact that the features of the current account mortgage mean that over the length of the mortgage the lender could earn less interest.
Tracker mortgages are linked to the Bank of England base rate and will simply go up and down with the base rate.
An adjustable rate mortgage will have an interest rate that changes periodically in relation to an index. Mortgage payments may increase or decrease accordingly.
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