Common interest rates used as the basis for product types
 
BBR - Bank Base Rate, this is the rate set monthly by the Bank of England monetary committee.
 
SVR - Standard Variable Rate, this is the rate set by individual lenders as their standard lending rate. It varies between lenders.
 
LIBOR - London Interbank Offered Rate, a reference rate used for lending between financial institutions.
 
Common product types
 
Fixed - a fixed rate is one that does not change.
 
Variable - a variable rate is one that can change, usually in response to changes in one of the basis rates above. The basis rates above are all variable rates because they can change. The most commonly offered variable rate products are described below.
 
Capped - a capped rate is one that will not rise above an upper limit, the cap. These types of product can also have a lower limit below which the rate will not fall, known as the floor. The rate will vary with one of the basis rates above but will not rise above the cap or fall below the floor.
 
Discount - a discount rate is one that offers a certain discount off one of the basis rates above.
 
Tracker - a tracker rate is guaranteed to 'mirror' the trends in one of the basis rates above, plus or minus some amount.