<
  • >
  • Compare Our TOP Variable Rate Mortgages

Variable-rate mortgages

Find the right variable rate mortgage for you

Add your details and our broker partner Mojo will find the best variable-rate mortgage for you

Browse your best variable-rate mortgage deal from over 70 lenders

If you're eligible, Mojo will show you a table of mortgage deals personalised to you
CardFinderLowProminence ProvidersCardFinderLowProminence ProvidersCardFinderLowProminence ProvidersCardFinderLowProminence ProvidersCardFinderLowProminence ProvidersCardFinderLowProminence ProvidersCardFinderLowProminence ProvidersCardFinderLowProminence ProvidersCardFinderLowProminence ProvidersCardFinderLowProminence ProvidersCardFinderLowProminence ProvidersCardFinderLowProminence Providers
Compare variable-rate mortgages
Trustpilot
YOUR HOME/PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. The FCA does not regulate buy-to-let mortgages for commercial and investment properties.
Author
Atousa Cunnell
Updated by
James Andrews
Last updated
May 12th, 2025
Reading Time -
3 mins
On this page


What is a variable-rate mortgage?

A variable rate mortgage is a type of home loan where your interest rate can move up or down over time—meaning your monthly repayments can change too.

This makes it different from a fixed-rate mortgage, where your interest rate stays the same for a set period. With a variable deal, your rate can shift based on wider market conditions or decisions made by your lender.

There are three main types of variable rate mortgage: 

Standard Variable Rate Mortgages (SVRs)

A standard variable rate mortgage is the default interest rate your mortgage lender sets, and it can go up or down at their discretion. Each lender has their own SVR, and they’re free to change it whenever they like.

While the SVR isn’t directly tied to the Bank of England base rate, it often moves in response to changes in it. Lenders may also adjust their SVR based on things like changes to their own borrowing costs, new regulations, or internal business decisions.

If you're on a fixed, tracker, or discount mortgage, you'll usually be moved onto your lender’s SVR once your deal ends, unless you choose to remortgage.

SVRs are often the most expensive mortgage rates available.

How to find the best variable-rate mortgage with Mojo Mortgages

Your Mojo expert can offer advice on finding the right deal for you

Tell us your mortgage information

You'll be asked a variety of questions to get a better understanding of your situation to help find a mortgage deal

Compare with Mojo's deal table

If you're eligible, you'll be shown a table of mortgage deals based on the information you provided

Get your best mortgage deal with an expert

Mojo experts will review the mortgage deal you like, make sure it's your best option, and sort the rest out for free

What are the advantages and disadvantages of SVR mortgages?

No early repayment charges – You’re usually free to leave or overpay your mortgage whenever you want, without fees.
Overpay whenever you like – Many SVRs let you make unlimited overpayments, helping you reduce your mortgage balance faster.
Short-term flexibility – If you’re planning to move or remortgage soon, an SVR can be a handy short-term option.
Rates can rise at any time – Your lender can increase the interest rate whenever they choose, making it hard to predict your monthly repayments.
Often more expensive – SVRs are typically higher than other mortgage rates, so staying on one long-term could cost you more.
No rate cap – Unlike some tracker deals, there’s no limit to how high your SVR can go.


How long can I stay on a variable rate mortgage?

There’s technically no limit to how long you can stay on a variable rate mortgage, especially if you’re on your lender’s SVR. But long-term, it’s rarely the cheapest option.

Tracker and discount mortgages usually last 2 to 5 years, though some lifetime deals are available. If you’re unsure what’s best, a mortgage advisor can help find the most appropriate deal for your circumstances.

“Watch out for any floors (or collars) with variable-rate mortgages, as they can minimise the savings you make if your rate drops. On the other hand, a cap (or ceiling) is the maximum limit of how high an interest rate can rise and can help offer a peace of mind.”
Author image
Atousa Cunnell
Content producer

Variable-rate mortgage FAQs

What are mortgage collars and mortgage caps?

A mortgage collar, also known as a “floor” means that the rate will never fall below a certain level. For instance, if your tracker mortgage follows the base rate, the lender might say that the interest rate will never drop below 0.25% – even if the base rate drops to that level. 

A mortgage cap is the opposite and means that your interest rate will never rise above a certain level, even if other financial indicators do. Caps are far rarer than floors.

What happens when my variable rate mortgage deal ends?

If your tracker or discount mortgage deal ends you will be automatically moved to your lender's standard variable rate. This means your repayments will go up if the SVR is higher than your offer rate. You can choose to shop around and switch to another deal, which should keep your costs lower.

Can I pay off my variable rate mortgage before the term ends?

If you’re on the SVR, you can pay off your mortgage fee-free. If you have a tracker or discount mortgage, most providers charge you if you repay or switch to a cheaper deal before the term ends. However, people on lifetime tracker deals usually escape early repayment charges.

About the author

Author imageAtousa Cunnell
Atousa Cunnell
Atousa is a Content Producer for money.co.uk, responsible for writing and editing a wide range of mortgage content that are helpful to the reader.

money.co.uk is not a mortgage intermediary and makes introductions to Mojo Mortgages to provide mortgage solutions.

money.co.uk and Mojo Mortgages are part of the same group of companies. money.co.uk is a trading name of Dot Zinc Limited, registered in England (4093922) and authorised and regulated by the Financial Conduct Authority (415689). Our registered address is: The Cooperage, 5 Copper Row, London, England, SE1 2LH.

Mojo is a trading style of Life's Great Limited which is registered in England and Wales (06246376). We are authorised and regulated by the Financial Conduct Authority and are on the Financial Services Register (478215). Mojo’s registered office is The Cooperage, 5 Copper Row, London, SE1 2LH. To contact Mojo by phone, please call 0333 123 0012.