Variable rate mortgages
Variable rate mortgages are the standard mortgages offered by most mortgage lenders.
Typical variable mortgage rates are set between 1.5% and 2% over the Bank of England base rate. Mortgage lenders set their variable rate mortgage rates to shadow the base rate, often changing their variable rate mortgage rates a few weeks after the Bank of England has made a change to the base rate.
Other mortgages, such as fixed mortgages or a discounted mortgage deal, will revert to the mortgage lenders variable rate at the end of the deal period.
Arrange your mortgage online through NationwideBenefits of variable rate mortgages
Opting for a variable rate mortgage means that if the Bank of England drops the base rate, your monthly mortgage repayments may be reduced too.
Drawbacks of variable rate mortgages
Likewise, however, if the base rate is increased then your monthly mortgage repayments will increase too, so speak to your financial advisor to calculate if a variable rate mortgage is the best mortgage option for you.
Some mortgage lenders can charge early redemption charges if you choose to remortgage to another mortgage product.
Where to find variable rates mortgages
Almost all mortgage lenders will offer variable rate mortgage deals, so visit any bank or building society, such as Nationwide, to check their offers. Alternatively, check with a mortgage broker such as Alexander Hall who have access to thousands of mortgage deals across all the major mortgage lenders.