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With Lenders coming up with ever more innovative products they are becoming even more diverse. Here are two examples:-
STEPPED RATE
Instead of there being a period of say a Fixed Rate then going to the Standard Variable Rate there may be Stepped Rates. This could be 2 or 3 Fixed Rates “stepping” up before the Standard Variable Rate applies. For instance a Mortgage may have a fixed rate of 5.5% for the first year, then a 6.5% rate for another year and then after that the Variable Rate would apply.
This could also apply to Stepped Rates for Capped or Discounted Rate products. In some cases the product may be more than one e.g. Fixed Rate for one year followed by a Discounted Rate for another year and then the Standard Variable Rate.
COMBINATION RATES
It is possible to get products that are a combination of two rates. For instance you may be able to fix 50% and have the other 50% at the Variable Rate. The Fixed Rate would apply for a period of time before the full mortgage is at the Variable Rate.
