Variable rate mortgage

With a variable rate mortgages, the interest rate will change over time as the bank base rate of interest changes. The interest rate changes are usually determined by the mortgage lender and therefore the timing of any interest rate changes and difference between your mortgage interest rate and the bank base rate can fluctuate over time.

The rate payable on a variable rate mortgage is based on the current bank of england base interest rate, which contrasts with fixed rate mortgages, where the rate is based on the mortgage lenders view of whate the base rate will do over the duration of the fix period. So where the consensus view is that base rates are likeley to rise, a variable rate may be cheaper than a fixed rate and conversly the revese may appy when the consensus view is that base rates will fall.

Variable rate mortgage

About Us | Site Map | Privacy Policy | Contact Us | Advertise here | ©2005 Lost Sock Limited Updated:Thu, 28 Aug 2008 12:11:58Music - Artist | Music - Albums | Music - Tracks (Variable rate mortgage)