Jason Bailey

Expertly compared by Jason Bailey

Products Updated October 12, 2021

 

Compare Variable Rate Mortgages

Our expert broker team have access to all the variable rate mortgages on offer from the whole UK market place. Compare variable deals side-by-side and see rates, fees and terms together for easy comparison. View mortgage deals on offer for first time buyers and those with bad credit or those who need to remortgage.

 

Free mortgage advice and brokerage service. Our experts can find you the perfect deal from thousands of products & exclusive deals:

Your home may be repossessed if you do not keep up repayments on your mortgage.

Results:1 providers expertly compared:

Lending Expert

Why?

This provider is our Expert’s Choice in its category as it won tops marks for the following.

  • TRUST
  • VALUE
  • EXPERTISE & KNOWLEDGE
  • CUSTOMER SERVICE

Learn more about how we review and assess the providers here on Lending Expert.

LTV
60% - 100%

Initial Rate
1.19% - 4.32%

Standard Rate (SVR)
3.94% - 4.79%

APRC
3.6%

Type
Variable & 3 ,5 & 10 Fixed Rate

Rated 4.9/ 5

All credit types

The mortgage experts at First Choice Finance can quickly assess your requirements and search the market place to find you the perfect mortgage deal. Click get a quote to make an enquiry today.

Read our customer and visitor reviews for this product:

Rating: 4 / 5 with 2 votes

Simple application process

by K Wheeler

Simple application process - broker was kind and offered advice.

Quick search

by James Hilton

This is a quick mortgage search facility and shows many lenders across the market. Impressed with the level of detail on each product.

Start Your Variable Rate Mortgage Application Today With Lending Expert!

Variable rate mortgages are home loans where the interest rate is not fixed. Instead, interest payments will vary in accordance with specific indexes such as the London Interbank Offered Rate or the Fed funds rate. This means that the interest rate at the start of the loan term will not be the same from beginning to end but will instead fluctuate throughout the loan term.

Unlike fixed-rate mortgages, the interest rate is subject to fluctuation or variation of market conditions. For this reason, variable rate mortgages typically offer more flexibility than fixed-rate mortgages. 

Additionally, when taking out a variable rate mortgage, you can benefit from periodic bonuses and commissions as well as lower monthly payments. This means that variable rate mortgages could be better for individuals with a fluctuating income.

Many lenders offer the option of a hybrid adjustable-rate mortgage which involves an initial fixed period followed by a variable rate for the rest of the loan term. 

Lending Expert is a variable rate mortgage broker and can compare over 1,000 mortgage deals across the UK. Whilst high street banks will typically offer variable rate mortgages too, we can help find the best option for you with rates from 1.39% per month, whether you are looking for interest only, fixed, variable, tracker or have a bad credit history.

Start by clicking on ‘Check my Eligibility’ below and enter some basic details about you and your property – and Lending Expert will be able to help you find the best variable rate mortgage according to your requirements. 

 

Key Features

  • Used for renting out property to tenants
  • Rates from 1.39% per month
  • Borrow up to £2 million
  • Loan Term – 1 to 25 years or upon request
  • Minimum 25% deposit
  • Interest only, fixed, tracker mortgages available
  • Rent charged should be 125% to 145% of mortgage repayments
  • Free tool to compare variable rate mortgages

 

What Is a Variable Rate Mortgage?

A variable rate mortgage is a loan which does not have a fixed interest rate throughout the loan term but instead varies according to market conditions. This means that homebuyers taking out a variable rate mortgage will pay back a different amount each month. They provide flexibility for borrowers and borrowers may be able to pay off their mortgage sooner.

 

How Much Is a Typical Variable Rate Mortgage?

Variable rate mortgages can vary greatly. The variation will typically depend on the UK economy or Bank of England’s base interest rate. For example, this rate is currently very low due to the recent Covid-19 pandemic (0.10%).

In general, standard variable rates are usually higher than rates offered by other mortgages. As an example the average standard variable rate in January 2019 was 4.9%; this is significantly higher than 2.52% which was the rate for a two-year fixed-rate mortgage.

Generally speaking, the average standard variable rate is around 4.40% but this figure fluctuates a lot and can also be impacted by discounts and deals. At the beginning of 2021, Moneyfacts reports that the best mortgage interest rates on the market were between 1% and 1.5%.

 

What Areas of the UK Does Lending Expert Cover as a Variable Rate Mortgage Broker?

We proudly offer variable rate mortgages across the entire UK, Scotland and Wales including Birmingham, Brighton, Bristol, Cardiff, Edinburgh, Glasgow, Leeds, Liverpool, London, Manchester, Nottingham, Newcastle, Sheffield and more.

 

How Much Can I Borrow From a Variable Rate Mortgage?

Speak to an expert today in order to find out how much you can borrow from a variable rate mortgage.

Variable rate mortgages can be a great option for those working with a fluctuating income as they allow flexibility between monthly payments. This can be accounted for when planning and budgeting with your mortgage expert.

 

Can I Get a Variable Rate Mortgage?

  • Aged 25 to 85 years’ old
  • Minimum income of £25,000 per year
  • Minimum deposit 25% of overall property value
  • Good credit status 
  • Strong financial record (limited defaults, arrears)
  • The property has potential value and can be rented out

 

The typical deposit required for a variable rate mortgage is 25% of the property value, with some lenders requiring around 40% to 45%. Larger deposits will usually result in paying lower rates overall, since you have paid off and own more of the property. Putting down a higher deposit may also be a requirement for those individuals with limited financial records or weaker credit ratings.

 

 

What Other Factors May Impact Eligibility for a Variable Rate Mortgage?

Many different factors could impact your eligibility to secure a variable rate mortgage. 

These include, but are not limited to, the following:

  • Credit score (this can affect the agreed interest rate)
  • Home location
  • Deposit amount
  • Monthly income
  • Home price and loan amount

 

Is a Variable Rate Mortgage the Best Option for You?

Variable rate mortgages are perfect for borrowers looking for flexibility. With these types of loans, the borrower has different options for repayment and can benefit from very low monthly payments in certain months. There are no penalties incurred if you want to adjust your monthly mortgage repayment, switch lenders or repay your mortgage earlier than planned.

However, for those who crave stability and predictability, variable rate mortgages may not be the best option. Unlike fixed-rate mortgages, variable rate mortgages are subject to changing rates. Although this can be great when rates decrease, it is not so favourable when rates increase. This means that over the course of the loan term, there could be a lot of variation. 

 

What Is the Difference Between Fixed-Rate and Variable-Rate Mortgages?

Variable rate mortgages involve repaying a different amount back each month depending on the market conditions. Fixed-rate mortgages, on the other hand, have the exact same repayment every month from the start to the end of the loan term.

In general, variable rate mortgages offer more flexibility for homebuyers. They may benefit from lower monthly payments during different periods of time as well as occasional bonuses and commissions. Additionally, and most importantly for some borrowers, they have the ability to make lump sum payments throughout the year and repay their mortgage sooner without incurring a fee.

Fixed-rate mortgages, on the other hand, may offer more stability or predictability. This can be good for homebuyers who earn the same amount each month and want to accurately budget in the long-term.

Typically, variable rate mortgages will have a fixed period of time whereby the interest rate will remain constant. After this initial period, the interest rate may be subject to current market rates. The duration of this period is what may vary greatly between lenders.

 

Variable Rate Mortgage Providers

Many lenders on the market offer competitive rates for variable rate mortgages. 

At Lending Expert, we compare the variable rate mortgage market in order to find the best provider to suit your needs.

Rather than approaching the lenders directly and dealing with their in-house advisors, working with a mortgage broker will offer impartial advice to get you the best deal on the market.

 

How Do I Compare Variable Rate Mortgage Rates?

Working with a mortgage broker such as Lending Expert will help you find the best mortgage to suit your circumstances without impacting your credit rating.

Contact us today to speak to an expert and start comparing variable rate mortgages to find the best option for you.

 

What To Consider Before Getting a Variable Rate Mortgage

Prospective buyers should always consider the following factors before deciding to take out a variable rate mortgage: 

  • Loan term
  • Monthly income
  • How much you value stability and predictability
  • Will you want to repay your mortgage early
  • Do you want the flexibility of switching lender
  • Will you have or want the option of increasing your monthly payments
  • How does the interest rate compare to market rate

 

What Happens if I Do Not Keep Up With Repayments?

Your variable rate mortgage is secured against the property meaning that any late repayments will lead to a damaged credit score, late penalties and maybe even risk of property repossession from the bank or lender. Luckily, with variable rate mortgages, it is easy to budget monthly payments and do any long-term financial planning.

 

Why Use Lending Expert As Your Variable Rate Mortgage Broker?

Working with a number of high street banks and specialist mortgage lenders, Lending Expert has access to over 1,000 mortgage deals available and is in the perfect position to help you get approved and get the best rates.

Our eligibility checker is completely free to use and can provide an indicative quote, with no obligation. 

Founded in 2013, we have years of experience working in the secured loan and mortgage market and have helped thousands of customers to date. Our values have always been to find the right product for the right individual at the competitive rate – and we are pleased to offer our services for you today!