Variable Rate Mortgages

What Is A Variable Rate Mortgage or Flexible Rate Mortgage?

A Standard variable rate mortgage (SVR) is a mortgage where the mortgage payment you make is linked to the rise and fall of interest rates from the Bank of England. In fact, usually the interest rate is a percent or two above the Bank of England rate. Your monthly mortgage payment could be more expensive, or cheaper from one month to the next depending on the Bank of England base rate.

What Benefits Do Standard Variable Rate Mortgages Offer?

Standard variable rate mortgages allow the flexibility of the mortgage payments going down if the rate is falling, however as they are usually set at a rate higher than the Bank of England base rate they may work out expensive. The standard variable rate mortgage is usually what your mortgage reverts to after any introductory offers or discounted mortgages finish.

If you are in any doubt about your mortgage it is always best to consult with an independent financial advisor before committing to the mortgage.