Variable Rate
Oh my word yes there are moooooooooooooore… Simples!!
The rate is not fixed, it can rise or fall at any time
How much you pay each month is subject to change
The rate is affected by the Bank of England base interest rate and other denominators
There are two types of variable rates too!
The two types of mortgage variable rates:
Standard Variable Rate (SVR):
Interest rate is set by the lender
Lender can increase or decrease the mortgage rate you pay monthly
Pros:
SVR gives you freedom to overpay, and leave your mortgage without high penalties
Cons:
SVR makes it difficult to budget for the future
Variable Rate Mortgages best are best for:
Homeowners with a desire to switch mortgage products with ease to suit their changing needs and lifestyle