Variable Rate Mortgages

Types of mortgages – Variable Rate

With a variable rate mortgage repayments go up and down in line with interest rate fluctuations as defined by LIBOR (London InterBank Offered Rate – the interest rate at which Banks in London lend to each other).

Generally a variable rate mortgage can be a repayment mortgage or an interest only mortgage. The variable mortgage has a rate of interest determined by the lender. When interest rates change (or when the lender decides) the variable rate will also change. However, if the interest rates change the lender does not have to pass this on to the borrower unlike a tracker mortgage.


World of Mortgages is authorised and regulated by the Financial Services Authority. Our FSA registration number is 430499. The FSA do not regulate certain mortgages.
The advice and/or guidance contained within this site is subject to the UK regulatory regime and is therefore targeted at consumers based in the UK.

We charge a fee usually 2% of the loan amount with a minimum of £2,999. Your home may be repossessed if you do not keep up repayments on your mortgage or other loans secured on it. The overall cost for comparison is 5% APR. The actual rate available will depend upon your circumstances. Ask for a personalised illustration.