24 Hour Loans glossary of financial terms

Adjustment Date

The adjustment date is used within the lending sector and is most commonly seen in the mortgage sector. This is the date that an interest rate will change ? usually this will happen with a variable or an adjustable rate mortgage, for example. These kinds of mortgages will not have fixed interest rates in the standard manner. They will therefore be linked to a particular index such as the lender?s Standard Variable Rate (SVR) and the rates charged on a loan in this instance will follow the index they are attached to.

So, if interest rates go up or down, then this kind of mortgage will also see a change in the interest rate that is charged to match the overall change. This change will be marked by the adjustment date which will show when the change in rates will take place/has taken place.