Variable Rate

The 'original' mortgage term, variable rate mortgages typically allow you to get the lowest interest rates at any time throughout the market. Variable rates also come with the benefit of usually not forcing a client into early repayment charges upon early redemption of a mortgage to either become mortgage free or to find a new mortgage product. They also have an added benefit in the event of interest rates decreasing so will mortgage repayments. 

 

However, with these positives come negatives. Whilst these secure the lower rates, they are like the name says, variable. If overall interest rates rise, so will the interest on your mortgage - meaning more money out of your pocket each month, for no gain.  

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Speak to a specialist Actuate mortgage advisor to understand the implications of taking out a variable rate mortgage.

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