Variable Rate Mortgages
A Variable Rate Mortgage (or Standard Variable Rate Mortgage) has an interest rate that may increase or decrease over time. The interest rate charges will change as interest rates in general change. A Tracker Mortgage is a specific type of Variable Rate Mortgage that is tied to the base lending rate.
Variable Rate Mortgages are often more flexible than Fixed Rate Mortgages - perhaps allowing for early redemption or early payment of some of the capital without incurring penalty charges. Variable Rate Mortgages will allow you to benefit from reductions in the interest rates - of course, the converse is also true and a Variable Rate Mortgage may also bring forwards your exposure to any increases in interest rates.
Compare online quotes to get up to date information on the current deals available and their specific terms and conditions. Mortgage calculators allow you to work out what a specific mortgage will cost you. may be made online but seek independent advice before making any final commitments.
Remember, a mortgage is security for a loan in the form of the provision of a right in property, such as land or buildings. Typically, if terms of the loan are not met, then the lender has the right to sell the property to recover the debt.