Variable-rate Mortgage
A variable-rate mortgage has an interest rate that can change over time.
1 min read Buying a Home
What it means
A variable-rate mortgage has an interest rate that can change over time. If the rate changes, your monthly repayments will usually change too.
Example
Your monthly payment increases from £1,050 to £1,120 after your lender raises its rate.
Why it matters
Your repayments may rise or fall, so it's worth planning for both.
Not all variable-rate mortgages follow the Bank of England base rate.
Can my repayments go down as well as up?
Yes. If your lender reduces the interest rate, your repayments may also fall.