 |
a)
standard variable rate loans - with these loans the
interest rate and thus the monthly payment tend to change
only where there are major shifts in the money market rates.
They won't be changed for minor changes in rates.
b)
base rate tracker loans - with these loans, the interest
rate and thus the monthly payment tend to change with every
change in money market rates because they are directly tied
to either the base rates of one or more of the high street
clearing banks or the London Interbank Offered Rate (LIBOR).
|
 |