This type of mortgage is straight forward, your monthly payments are calculated upon the base rate set by the Bank of England. They predict the rate by looking and assessing the current state of the economy.

The advantage of the mortgage is that if the rates are low then your monthly premiums would be low and remain low until the bank feels that the economy is changing and raises the rates base line.

The disadvantage of the mortgage is that you may end up paying more than what you can afford if the rates are too high in between the payment period. Remember that a mortgage is not for a year or 5 years like a loan, it will be with you for most of your life. The economy may change in 10 years leaving you to pay high premiums each month.

Always check how the lender would calculate the monthly repayments because some lenders might not follow the base rate as closely as other lenders. This may result in you having to pay considerably more each month, a budget which you may not have prepared for when taking out the loan. Always shop around for the best deal and get professional advice from a mortgage advisor regarding these particular matters.

No you can pay more than the base rate stated by passing, but you can not pay less than the base rate specified by the ban of England . If you feel that you can afford to pay more during the months when the base rate is down then you do have the flexibility of passing the base rate by which is unlike a tracker mortgage.

Always do your home work when shopping around for a self certification mortgage, speak to advisors who will show you their product and answer any questions you may have. Lender will have incentives which may look great at the time but may turn out to be costly in the future.