Adjustment Date
Any mention of an adjustment date with regards to a loan means that the interest rates on the loan are not fixed. It applies mainly to mortgages, where interest rates can often vary. The lender will set his standard rates at a bit above the Bank Of England’s base rate, say 1 or 2%, and if this changes the lender will set an adjustment date, after which point you can expect your interest rates to change up or down according to the current economic climate. With any luck you can find your repayment rates decreasing by £1,000 per year with a drop of one percent – but the adjustment date can equally see the amount increasing by the same amount.
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