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Correct at 06/09/2021

Apply for a variable rate mortgage with L&C

If you’re looking for a variable rate mortgage, we can provide all the help and advice you need to find the best deal.

You can see all the top variable rate mortgages on our best buy tables, and apply online for the mortgage you want in just a few simple steps. Our advisers are on hand to talk through the mortgage options available to you and give you any support you need. Our help doesn’t end there – we’ll see you through the mortgage application process from start to finish, ensuring everything goes smoothly.

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Finding the best variable rate mortgage deal

If you choose a variable rate mortgage, your interest rate can move up and down over time, so your monthly payments are likely to change.

There are three main types of variable rate mortgage.

  • Standard variable rate: this is the rate you typically move on to once any introductory deal finishes. It is usually higher than other mortgage rates, but there will typically be no Early Repayment Charges (ERCs) if you repay your mortgage in full.
  • Tracker mortgage: your rate will track an external interest rate, which is usually the Bank of England Base Rate, plus a set percentage. There may be an interest rate ‘collar’ below which your rate can’t fall.
  • Discounted mortgage: with this type of mortgage, you pay the lender’s standard variable rate minus a discount.

With both a tracker and discounted rate, Early Repayment Charges (ERCs) could apply if you wanted to pay off your mortgage early.

All these types of mortgages have rates that can go up or down over time, meaning your monthly payments may rise or fall. If you don’t want your mortgage payments to change, you may prefer to opt for a fixed rate mortgage, where the rate stays the same for a set period of time.

You can find out more in our guide ‘What is a variable rate mortgage?’

Variable rate mortgage FAQs

What is the current standard variable mortgage rate?

Each lender determines its own variable mortgage rate so the current rate will depend on who you hold your mortgage with. Your lender can provide you with their current standard variable rate.

How do standard variable rate mortgages work?

The standard variable rate is the rate you usually move on to once any introductory deal you’ve been on finishes. They work in the same way as other mortgages, so if you have a repayment mortgage you make monthly payments until your mortgage is paid off. Bear in mind though that the standard variable rate is generally more expensive than other types of mortgage rate.

How often do variable mortgage rates change?

It’s up to lenders to decide when they’ll change variable mortgage rates. Unless you’ve got a tracker mortgage, they don’t necessarily have to move in line with changes in the Bank of England base rate.