Variable Rate

A variable rate, or Standard Variable Rate is sometimes abbreviated as SVR. This type of rate fluctuates as the Bank of England base rate moves and lenders increase or decrease their standard variable rates accordingly. When interest rates go up your mortgage payments increase, and when rates go down your mortgage payments decrease. When you select this type of rate you need to make an allowance in your budget for interest rate increases to ensure you will still be able to afford your monthly payments. This type of rate does not usually carry any tie ins.