Variable Rate Mortgages are a great mortgage product for borrowers who want the flexibility to change their interest rate at any time during the mortgage term.
Borrowers should be aware that the interest rate on a Variable Rate Mortgage can increase or decrease at any time, which could impact the monthly mortgage payment amount. The interest rate can change for a number of reasons, such as changes in the Bank of England Base Rate or the mortgage lender’s own variable rate.
Variable Rate Mortgages can be a great option for borrowers who want to take advantage of interest rate decreases, but should be cautious if they think that interest rates may go up in the future. Conversely, a fixed interest rate stays the same for a set period, even when other interest rates are decreasing.
Some mortgage lenders will offer a discounted initial interest rate on Variable Rate Mortgages, which can be a great way to save money on mortgage payments in the early years of the mortgage term.
If you are considering a Variable Rate Mortgage, please speak with a mortgage broker to learn more about this mortgage product and to see if it is the right fit for your individual mortgage needs.
We also have a Guide to Variable Rate Mortgages which covers this topic in more detail.
