Variable Mortgage
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A variable mortgage has interest rates which rise and fall throughout the term of an agreement. Monthly repayments made on your mortgage will be directly influenced by the lender’s variable base rate.
This means you can either benefit from low interest rates, or suffer the consequences of an interest rate hike from one month to the next. In times of economic recession like in the early 90s, base rate increases caused a mortgage meltdown with thousands of people unable to make repayments. More...
| Lender | Rate | Duration | Standard Rate | Max LTV | Tie in | Proceed |
|---|
| Fixed (no tie-in beyond benefit period) |
| First Direct Offset | 5.49% | 2 years | 6% | 80% | No Overhang |  |
|
| Alliance & Leicester Prime | 6.14% | To Aug 2010 | 7.19% | 75% | No Overhang | |
|
| Derbyshire BS (Direct) | 6.79% | To Sep 2018 | 7.09% | 90% | No Overhang | |
|
| Fixed (with tie-in beyond the benefit period) |
| Market Harborough BS (Direct) | 3.99% | 2 years | 7.15% | 75% | Overhang | |
|
| Capped |
| Lender | Rate | Duration | Standard Rate | Max LTV | Tie in | Proceed |
|---|
| Light Adverse Payment History |
| Skipton BS | 6.19% | To Aug 2018 | 6.45% | 75% | No Overhang | |
|
| Ipswich BS | 6.49% | To Aug 2011 | 7.24% | 80% | No Overhang | |
|
| Medium Adverse Payment History |
| Heavy Adverse Payment History |
| Lender | Rate | Duration | Standard Rate | Max LTV | Tie in | Proceed |
|---|
| Discount (with tie-in beyond the benefit period) |
| Discount (no tie-in beyond benefit period) |
| HSBC Bank plc (Direct) Purchase | 5.43% | 2 years | 6.25% | 90% | No Overhang | |
|
| Mansfield BS (Direct) | 5.65% | 3 years | 7.19% | 75% | No Overhang | |
|
| Barnsley BS (Direct) Branch only | 5.69% | 2 years | 7.19% | 85% | No Overhang | |
|
| Market Harborough BS (Direct) | 5.95% | Term | 7.15% | 75% | No Redemption | |
|
| Lender | Rate | Duration | Standard Rate | Max LTV | Tie in | Proceed |
|---|
| HSBC Bank plc (Direct) Purchase | 5.43% | 2 years | 6.25% | 90% | No Overhang | |
|
| First Direct Offset | 5.49% | 2 years | 6% | 80% | No Overhang | |
|
| Alliance & Leicester Prime | 5.89% | 2 years | 7.19% | 75% | No Redemption | |
|
| Market Harborough BS (Direct) | 5.95% | Term | 7.15% | 75% | No Redemption | |
|
| Lender | Rate | Duration | Standard Rate | Max LTV | Tie in | Proceed |
|---|
| Direct Line | 6.39% | To Jun 2010 | 6.5% | 95% | No Overhang | |
|
| Bank of Ireland 1st Start | 6.99% | To Jul 2013 | 7.09% | 95% | No Overhang | |
|
| Bristol & West Mortgages First Start | 7.19% | To Jul 2013 | 7.09% | 95% | No Overhang | |
|
| Coventry BS | 7.39% | To Sep 2013 | 7.09% | 95% | No Overhang | |
|
| Lender | Rate | Duration | Standard Rate | Max LTV | Tie in | Proceed |
|---|
| Lender | Rate | Duration | Standard Rate | Max LTV | Tie in | Proceed |
|---|
| Barnsley BS (Direct) BTL | 6.19% | 3 years | 7.19% | 75% | No Overhang | |
|
| Principality BS Buy to Let | 6.39% | To Jun 2010 | 7.09% | 60% | No Redemption | |
|
| Lloyds TSB BTL (Direct) | 6.54% | To Aug 2011 | 7% | 80% | No Overhang | |
|
| National Counties BS Investment | 6.79% | To Aug 2013 | 7.35% | 75% | No Overhang | |
|
| Lender | Rate | Duration | Standard Rate | Max LTV | Tie in | Proceed |
|---|
| Market Harborough BS (Direct) | 6.1% | Term | 7.15% | 75% | No Redemption | |
|
| Scottish Widows Bank Offset | 6.29% | 2 years | 6.49% | 75% | No Overhang | |
|
| Yorkshire BS (Direct) | 6.54% | To Jun 2013 | 6.9% | 75% | No Overhang | |
|
| Lender | Rate | Duration | Standard Rate | Max LTV | Tie in | Proceed |
|---|
| Mansfield BS (Direct) | 5.9% | 2 years | 7.19% | 75% | No Overhang | |
|
| Principality BS Direct | 5.99% | To Jun 2010 | 7.09% | 75% | No Overhang | |
|
| HSBC Bank plc (Direct) Fee Free | 5.99% | Term | 6.25% | 90% | No Redemption | |
|
In times of relative stability, however, having a variable mortgage means you can make significant savings if the lender’s base rate remains low for months or even years. The downside to a variable mortgage plan, however, is the unpredictability of the economy and the lender’s base rate. Interest rate uncertainty means you cannot accurately predict the level of monthly repayments on your mortgage.
Advice
Let us help you shop around for the best variable mortgage deal. Check out our best buy table, which allows you to compare deals on variable mortgages. We have also compiled a comprehensive list of the main variable mortgage providers; visit our A-Z directory for their details. Or maybe you would like to visit our Forum to see what other people have to say about mortgage providers and post your own message.
Finally, if you have had dealings with any provider on our A-Z directory, don’t leave without giving them a rating, we would appreciate your assessment.
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