Variable Rate Mortgages
What is a Variable Rate Mortgage?
A 'variable rate' mortgage product is simply one that can move up as well as down. The three main types of variable rate products are tracker rates; discounted rates and standard variable rate products. Tracker rate products have a guaranteed differential with the Bank of England base rate. The Standard Variable Rate (SVR) is the Lender's equivalent base rate. It is usually the rate that borrowers move onto at the end of their initial product. Finally, a discounted product has a guaranteed differential from the Lender's SVR.
Lenders will not charge exactly the same as the Bank of England base rate for their standard variable rate and actually can chose not to move their standard variable rate at the same time or by the same amount as the Bank of England. The important thing when choosing a variable product is to factor in the fact that the rate can go up and to make sure you would still be able to afford the repayment.
How can comparethemarket.com help?
We are committed to helping you save time and money. We understand that one of the most important decisions to make is whether to have a variable rate or a fixed rate product and we realise sometimes it is much easier to discuss the options.
If you would prefer to talk to someone to make sure you make the right choice, call a moneyQuest advisor now on 0845 0175196.
Also...
Once you have brought your new property and are preparing to move in, you will need to consider other bills and insurances. These could include options such as;
Home Insurance
Utility providers like gas and electricity
Broadband and Digital TV
Life Insurance
Mortgage Payment Protection Insurance
Home Phone
Make sure you compare with comparethemarket.com to find competitive deals that could save you money!
Data is provided by lovemoney.com Limited who are an appointed representative of lovemoney.com Financial Services Limited, authorised and regulated by the Financial Services Authority.
Advice is provided by MoneyQuest Mortgage Brokers Limited who are an appointed representative of Legal & General Partnership Services Limited, which is authorised and regulated by the Financial Services Authority for advising on and arranging mortgages and insurance. Lovemoney.com Limited and MoneyQuest Mortgage Brokers Limited are not part of BGL Group Limited of which BISL Limited forms part.