Variable Rate Mortgage Information

 

A Variable Rate mortgage is one that changes when the lender announces interest rate changes. Unlike a fixed rate, if the mortgage rate goes up then you will be paying more each month. Equally if it goes down then you pay less.

 

Advantages:

 

Your monthly repayments will fall with reductions in interest rates

 

Gives you flexibility

 

Disadvantages

 

Your repayments will rise with interest rates

 

Does not give you the ability to budget for repayments as easily