Variable Mortgage
Variable Rate mortgages are generally the rate you go onto after a fixed term has ended. This is known as the SVR, Standard Variable Rate. This rate is usually set 1-2% higher than the Base Rate and stays roughly in line with the Base Rate changes.
Pro's
- You always pay the lenders current rate and there are no hidden charges.
- You may benefit from rate reductions.
- Unlikely to incur arrangement fees or early repayment charges (ERC'S).
Con's
- Budgeting can be more difficult.
- You are not protected from interest rate increases.
- There are almost always cheaper alternatives.