Remortgage Market

A Guide to Variable Rate mortgages.

General information on variable rate mortgages, which is in no way to be considered financial advice.

Standard Variable Rate Mortgage

Any one who is on the standard variable rate (SVR) mortgage should seriously research the various remortgage deals available.

When The Bank of England sets its base rate, a standard interest rate is issued - yep that snippet on the evening news you have heard over and over again for many years.

Variable Rate Mortgages

Standard variable rate mortgages are not the most common choice, since it is possible to get a discounted variable rate Mortgage with no redemption penalties in today’s mortgage market.

It is also often argued as to why a borrower would choose or be advised to have a standard variable rate mortgage in today’s financial market place.

Mortgage Lender's Variable Interest Rate

The mortgage lender's variable interest rate is set higher than the base rate - say 1 or 2% above it.

So if the base rate is 5% and you're paying 2% above it, you will end up paying 7% interest.

All mortgage providers have their own variable interest rate mortgage deals. They vary a greatly often as much of a difference as 1% in the variable rate.

Standard variable rate mortgages are only really advisable if there is an immanent drop in the interest rate.