You can get the best variable mortgage by finding the lowest interest rate. However, the rate you get can change during the term of the mortgage deal. A variable rate can be:

  • A fixed interest rate added to the Bank of England base rate, which is how much the Bank of England charge to lend money to the banks.

  • A fixed interest rate deducted from the lender's standard variable rate (SVR), which is the mortgage rate you move to after your mortgage deal ends.

Both of these variable rate deals can change during the course of a mortgage term. Speak to a mortgage adviser if you are unsure what mortgage type is right for you.

Variable or fixed rate?

A variable rate deal can change your repayments during its term, potentially causing them to go up or down.

A fixed rate deal will keep your repayments the same for the term you sign up to.

If you would rather know exactly how much your mortgage repayments will be, then a variable rate mortgage may not be the best option for you.

You can compare fixed rate mortgages if you want to keep your repayments the same for a set term.

Can you get any variable rate deal?

You can only get a variable mortgage deal that matches your loan to value (LTV). This is the amount you owe on your mortgage compared to the value of your property.

For example, if your mortgage is 150,000, and your property is worth 200,000, your LTV is 75%.

The rates are usually better if you have a lower LTV, however you can still find a good deal by comparing mortgage deals for whatever your LTV is.

Variable rate mortgage FAQs


What happens when my variable rate ends?


You are automatically moved to your lender's standard variable rate (SVR), meaning your repayments could go up if it is higher than your existing rate.


Can I pay off my mortgage before the term ends?


Yes, but many lenders charge you for this. Variable mortgages could charge you if you repay or switch them before the term ends.


Will applying for a mortgage affect my credit rating?


Yes, every application you make appears on your credit record, so avoid applying for too many. Here is how your credit record works.


Do I need a good credit record to apply?


No, but it will increase the chances of your mortgage getting accepted. You may find it harder to get a mortgage with poor credit.

About our mortgage comparison


Who do we include in this comparison?


We include every mortgage in the UK you can apply for directly from the lender. They are all from lenders regulated by the Financial Conduct Authority.

Here is more information about how our website works.


How do we make money from our comparison?


We have commercial agreements with some of the companies in this comparison and get paid commission if we help you take out one of their products or services. Find out more here.

You do not pay any extra and the deal you get is not affected.