Compare Variable Rate Mortgages
Looking for the Best Variable Rate Mortgages?
- Find a mortgage that’s right for you
- Connect with UK-based mortgage lenders
- Compare mortgages from a range of different lenders
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Looking for the best variable rate mortgages in the UK?
Buying a home is wonderful and exciting, but it can also be a stressful and confusing experience. There are so many different options out there for mortgages that it can be hard to pick the one that will suit you best. Even once you have decided on the type of mortgage you want to use, every UK mortgage lender offers slightly different deals, which can make it harder to choose.
If you want to find the best variable rate mortgage for your needs, you can use our handy quote comparison tool. Comparing quotes for mortgage offers can help give you the chance to save money and sort out your financial future, by finding the best variable rate mortgage for you.
How do variable rate mortgages work?
A variable rate mortgage essentially means that the interest rate can change over time. The interest rate on a variable rate mortgage usually changes in relation to the base interest rate, meaning that it will change depending on the state of the economy. Hikes in the Interest rate would mean your monthly interest payments would go up. However the reverse is also true as if the interest rate drops then so to will your monthly payments. There are three main types of variable rate mortgage.
- Tracker mortgage
- Discount rate mortgage
- Standard variable rate mortgage
Is a variable rate mortgage a good idea?
A variable rate mortgage will often have a lower interest rate than a fixed interest rate mortgage. However, it is important to remember that the interest rate on a variable rate mortgage can go up. The interest rate could exceed that of a fixed rate mortgage. This means that a variable rate mortgage may not always be right for everyone.
As such, it is a good idea to compare variable rate mortgages carefully.
What is a fixed rate mortgage?
A fixed rate mortgage is where the interest rate is set out in your initial mortgage agreement. After this, the interest rate does not change. This means it may be higher or lower than the interest on a comparable variable rate mortgage at different times. Many borrowers may choose a fixed rate if they feel that they are able to lock in a good deal at the time of taking out the mortgage. This means that they’ll know exactly what they can expect to pay in future but they may additionally miss out on any future drops on the interest rate.
Why would you get a variable rate mortgage?
The main thing that appeals about a variable rate mortgage is the chance for lower interest rates. Most people who choose to get a variable rate mortgage hope that the interest rate will stay low. This would mean that they spend less than someone with a fixed rate mortgage.
What is the danger of taking a variable rate loan?
The biggest risk with any variable rate loan or mortgage is that interest rates can go up. If the interest rate goes up, you could end up paying more than you would have with a fixed rate mortgage. Unfortunately, it is hard to predict whether interest rates will go up or down. This means that there is always an aspect of risk when taking a variable rate mortgage.
Is a variable rate mortgage a secured loan?
A secured loan means any loan that is secured against an asset. In the case of a mortgage, the asset is the house you buy. Other secured loans exist and can be secured on different assets. This means that if you do not make loan repayments, the asset can be repossessed.