Capped rate  Your payments are variable and often linked to a base rate, but fixed not to go above a set level (the 'ceiling' or 'cap') during the period of the deal. At the end of the period, you are usually charged the lender's standard variable rate. Changes in the Bank of England’s interest rate may influence the lender’s rate. The impact depends on if it’s tracking a base rate or not. Collared rate  May be used in combination with a capped rate or a tracker (or both). Your payments are variable but will not fall below a set level (the 'collar'). Interest rate types Mortgages Payment methods Standard variable rate  Your payments move up or down at the lender's  discretion. Their decision may be influenced by changes in the Bank of  England’s interest rate. Tracker rate  A variable rate loan with an interest rate that's equal to or a set  amount above or below the Bank of England or some other base rate. It tracks  (moves up or down with) that rate. Other base rates may still be influenced by  changes in the Bank of England’s rate. At the end of the deal period, the lender  usually charges you its standard variable rate.  Discounted interest rate  Your monthly payments can go up or down, but you get a discount on the lender's standard variable rate for a set period of time. At the end of the deal, you usually change over to the full standard variable rate. Fixed interest rate   Your payments are set at a certain level for an agreed period. At the end of that period, they'll usually switch you to the standard variable rate.