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.