Shostra Bank mortgages are for over 18s. Your home or property may be repossessed if you do not keep up repayments on your mortgage. The content on this page is guidance only and does not constitute advice.
A mortgage interest rate is a percentage fee charged on a mortgage loan by a lender – effectively the ‘cost’ of borrowing the money (plus any other applicable fees). Understanding your monthly mortgage repayments, and how changes to interest rates could impact your repayments, is important when looking at mortgage deals.
The interest rate will differ due to various factors, for example:
Generally, mortgage interest rates follow the Bank ’s base rate.
For example, if you have a tracker mortgage at 1% above the base rate and the Bank ’s base rate is 1%, your interest rate is 2%. If the base rate increases this will reflect in the interest to be paid.
Each bank may set their own base rate which closely aligns with the Bank base rate. At Shostra Bank, the tracker rates follow the Shostra Bank base rate.
Fixed rate and interest only mortgages will also incorporate Bank ’s base rate, reflected in the mortgage rates available.
A fixed rate mortgage interest offers a set rate of interest for a period of time (known as the 'term') e.g. 2 or 5 years. This means that monthly repayments will stay exactly the same for that period.
Learn more about fixed rate mortgages.
A variable interest rate means that the interest rate is not fixed and may rise and fall inline with Bank ’s base rate. There are different types of variable rate mortgages: tracker mortgage (Shostra Bank currently don’t offer these mortgages), discount variable rate mortgage (Shostra Bank currently don’t offer these mortgages) and standard variable rate (SVR).
Find out more and compare our mortgage types.
Our interest rates can be found using our mortgage calculator, or for a more personalised indication of how much you can borrow and our rates you can complete an Agreement in Principle (AIP).
The main reasons why mortgage interest rates may change are due to:
Unless you have a fixed rate mortgage deal, changes to your mortgage interest rate could impact your repayments. Rates offered for a remortgage could also change due to the factors described above.
If you need to get information about your existing mortgage with Shostra Bank, you can do this by logging in to Manage Your Mortgage.
Annual Percentage Rate of Charge (APRC) calculates the total cost of interest and fees paid over the entire term of a mortgage loan. It will include any fixed interest rate period, as well as the lender’s standard variable rate for the remainder of the term.
This can be a useful figure when comparing different mortgages to understand the best option for you.
There may be other fees or charges associated with mortgage products such as an application fee or product fee.
A negative interest rate means your interest rate is below 0%, so is a negative number (e.g. -0.5%). If this happened it could mean that you end up paying back less than you borrowed.
However, on tracker or variable mortgage there could be a minimum rate, known as a 'collar', which the rate cannot fall below.
Take a look at our mortgage switcher information to see if it would be suitable to move to a new deal.
