What are variable rates?
Variable rate mortgages do exactly as they say on the tin. The interest rate will vary, in other words they simply rise and fall. However, this does mean that you can’t be sure what your monthly repayments are going to be. If rates fall for example, you will benefit in terms of a lower monthly payment, but if they rise, your monthly repayments too will rise. The fluctuations in these variable rates and interest rates are linked to the Bank of England base rate, the BBR, in which they make these decisions on a monthly basis.
There is a number of different variable rate mortgages available, as follows: -
discounted rates
standard rates
base rate trackers