A fixed rate where the interest rate remains constant for a set period; typically for 2, 3, 4, 5 or 10 years. Longer term fixed rates (over 5 years) whilst available, tend to be more expensive and therefore less popular than shorter term fixed rates.

A capped rate where similar to a fixed rate, the interest rate cannot rise above the cap but can vary beneath the cap. Sometimes there is a collar associated with this type of rate which imposes a minimum rate. Capped rate are often offered over periods similar to fixed rates, e.g. 2, 3, 4 or 5 years.

A discount rate where there is set margin reduction in the standard variable rate (e.g. a 2% discount) for a set period; typically 1 to 5 years. Sometimes the discount is expressed as a margin over the base rate (e.g. BoE base rate plus 0.5% for 2 years) and sometimes the rate is stepped (e.g. 3% in year 1, 2% in year 2, 1% in year three).

Buy to Let mortgages are provided for property purchases or remortgages for investment in the private rental sector. How much you can afford to borrow can be based on how much you earn or the amount of rent expected from the property. Some lenders may also take your existing mortgage or other loans into consideration.

Buy-to-let mortgages can be fixed, capped, discounted or variable. Some may be base rate trackers, or have cashbacks and flexible features.

With a variable rate buy to let mortgage the amount you repay increases or decreases in line with interest rate changes. This means that you cannot predict the monthly cost of the borrowing. In times of falling interest rates variable rate mortgages are beneficial, as your mortgage repayments will reduce. however, if interest rates rise then so will repayments.