With a variable rate mortgage your payments go up or down with the lender's standard interest rate. This often changes following Bank of England base rate changes.
Mortgage lenders set their standard variable rate depending on the movement of the Bank of England base rate. The level at which the standard variable rate is set will vary between different lenders, but as a general guide this is between 1.5% and 3.5% above Bank of England base rate.
A standard variable rate mortgage may not always change when there is a rise or fall in the base interest rate changes made by the Bank of England. Tracker mortgages are more closely allied to these shifts.
Those people looking for fixed mortgage repayments may be better off opting for fixed-rate mortgages.
Standard variable rate with cashback - With these deals you get a cash lump sum as well as the loan when you take out the mortgage. To secure this type of deal you are usually tied into the variable rate for a set period.
At Professional Mortgage Services we will review your requirements to establish which lender is offering the best product based upon your individual needs.