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Variable rate moving home mortgage rates

The chart below shows the Best Variable Mortgage Rates available for those who are looking to move home. You can personalise the chart by adding the value of the property you want to buy and the value of the mortgage you want to get.

Compare the Best Variable Rate Mortgages available from UK Providers in the chart below.

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Best Variable Rate Mortgages

Best Variable Rate Mortgages

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We found 257 products in total, of which 0 have links to providers.

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Selecting ‘Provider Links First’ brings all products that you can apply for directly via Moneyfacts to the top of the chart in rate order. Products that do not have an ‘Go To Provider's Site’ button will appear below, again in rate order. Selecting an option from the drop-down will change the chart to list all products in order depending on the option you have selected, with the best rate being at the top. Products that have ‘Go To Provider's Site’ links will still be in the list but in rate position.

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  • Progressive BS Discounted Variable
    Rate
    4.84%
    4.84% Discounted Variable (collared at 2.00%) for 2 years (3.90% disc)
    reverting to 8.74%
    APRC
    8.2%
    Max LTV
    75%
    Product Fees
    £0.00
    Initial Payment
    £1,254.17
    Total Over
    Speak To A Broker
  • Reliance Bank Discounted Variable
    Rate
    4.85%
    4.85% Discounted Variable to 31/10/2026 (2.65% disc)
    reverting to 7.50%
    APRC
    7.2%
    Max LTV
    75%
    Product Fees
    £1,094.00
    Initial Payment
    £1,255.43
    Total Over
    Speak To A Broker
  • Newbury BS Discounted Variable
    Rate
    4.89%
    4.89% Discounted Variable for 3 years (2.11% disc)
    reverting to 7.00%
    APRC
    6.6%
    Max LTV
    75%
    Product Fees
    £850.00
    Initial Payment
    £1,260.47
    Total Over
    Speak To A Broker
  • Newbury BS Discounted Variable
    Rate
    4.89%
    4.89% Discounted Variable for 3 years (2.11% disc)
    reverting to 7.00%
    APRC
    6.6%
    Max LTV
    65%
    Product Fees
    £850.00
    Initial Payment
    £1,260.47
    Total Over
    Speak To A Broker
  • Furness BS Discounted Variable
    Rate
    4.99%
    4.99% Discounted Variable (collared at 3.00%) for 2 years (3.70% disc)
    reverting to 6.75% Discounted Variable
    APRC
    7.8%
    Max LTV
    80%
    Product Fees
    £999.00
    Initial Payment
    £1,273.14
    Total Over
    Speak To A Broker
  • Progressive BS Discounted Variable
    Rate
    5.14%
    5.14% Discounted Variable (collared at 2.00%) for 2 years (3.60% disc)
    reverting to 8.74%
    APRC
    8.3%
    Max LTV
    60%
    Product Fees
    £0.00
    Initial Payment
    £1,292.25
    Total Over
    Speak To A Broker
  • Loughborough BS Discounted Variable
    Rate
    5.15%
    5.15% Discounted Variable (collared at 3.50%) for 3 years (2.79% disc)
    reverting to 7.94%
    APRC
    7.4%
    Max LTV
    95%
    Product Fees
    £999.00
    Initial Payment
    £1,293.53
    Total Over
    Speak To A Broker
  • Reliance Bank Discounted Variable
    Rate
    5.25%
    5.25% Discounted Variable to 31/10/2026 (2.25% disc)
    reverting to 7.50%
    APRC
    7.2%
    Max LTV
    75%
    Product Fees
    £99.00
    Initial Payment
    £1,306.36
    Total Over
    Speak To A Broker
  • Suffolk Building Society Discounted Variable
    Rate
    5.25%
    5.25% Discounted Variable for 2 years (3.44% disc)
    reverting to 6.95% Discounted Variable (collared at 3.00%)
    APRC
    7.9%
    Max LTV
    80%
    Product Fees
    £1,198.00
    Initial Payment
    £1,306.36
    Total Over
    Speak To A Broker
  • Progressive BS Discounted Variable
    Rate
    5.25%
    5.25% Discounted Variable (collared at 2.00%) for 2 years (3.49% disc)
    reverting to 8.74%
    APRC
    8.3%
    Max LTV
    75%
    Product Fees
    £0.00
    Initial Payment
    £1,306.36
    Total Over
    Speak To A Broker
Representative Example
Note

Mortgage Advice Bureau offers fee free mortgage advice for Moneyfacts visitors that call on 0808 149 9177 or email moneyfacts@mab.org.uk. If you contact Mortgage Advice Bureau outside of these channels you may incur a fee of up to 1%.

Any contractual relationship will be with Mortgage Advice Bureau.

Disclaimer

Credit will be secured by a mortgage on your property. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. Written quotations are available from individual lenders. Loans are subject to status and valuation and are not available to persons under the age of 18. All rates are subject to change without notice. Please check all rates and terms with your lender or financial adviser before undertaking any borrowing.

Provider Links

‘Go To Provider's Site’ links are where we have an arrangement with a provider so you can move directly from our site to theirs to view more information and apply for a product. We also use ‘Speak to A Broker’ links where we have an arrangement with a preferred broker to move you directly to their site. Depending on the arrangement we may receive a modest commission either when you press a 'Go To Provider's Site' or 'Speak To A Broker' button, when you call an advertised number or when you complete an application following a link from our website.

Variable rate mortgages explained

What is a variable rate mortgage?

A variable rate mortgage is a mortgage rate that can change over time, which means it can decrease or increase depending on wider economic circumstances. Due to the added risk of rates increasing, providers will often offer lower variable rates than fixed rates. 

Different types of variable rate mortgage

There are three main subtypes worth knowing about which may be able to provide more risk-averse borrowers with another option aside from a fixed rate deal:

Tracker mortgages

This type of mortgage comes with a rate that moves up and down in line with changes to the Bank of England base rate (so it tracks this external rate), meaning that your payments can fluctuate based on a measure that may be a bit more easy to predict than providers’ internal decisions. So, if you believe that base rate is due to decrease in the next year or so, this might be a good choice. Of course, if you’re interested in a tracker mortgage with a long term, base rate will become increasingly harder to predict.

Some tracker rate mortgages will come with a collar or cap. A mortgage collar refers to a minimum set rate that your mortgage won’t be able to go under, while a mortgage cap is a maximum ‘ceiling’ rate. The best tracker mortgages for the more risk-averse borrower may be those with a cap, rather than a collar, but unfortunately capped mortgages tend to be very rare. On the other hand, because you’re taking a bigger risk, mortgages with a collar or no outer limits at all will likely come with lower rates than those few mortgages that have a cap.

Standard variable rate mortgage

Most lenders offer a standard variable rate (SVR). The fees associated with taking out, or remortgaging from, an SVR mortgage are often relatively low. This is because many have low setup costs and no early repayment charges. Unlike a tracker, an SVR is set by each individual lender in response to factors such as base rate rises, so your rate may increase or decrease at any time.

The SVR tends to be the interest rate you fall back on after your initial mortgage deal ends, when it comes to both fixed and variable rate deals. As such, these deals will generally have higher rates than most other mortgage types in the market.

Discounted variable rate mortgage

Discounted variable mortgages are another form of variable rate mortgage, whereby the lender offers a discount on a certain rate, most commonly the lender’s SVR, in the form of an introductory term. You can find these in the comparison chart for discounted variable mortgages. For example a lender  offering a 2% discount on its SVR of 4.50%, would charge 2.50% to the borrower.

 

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What is LTV and how does it affect the mortgages available to me?

Loan-to-value (LTV) refers to the ratio between the value of the property and the loan you are seeking. So, if you have a 10% deposit (£20,000 on a property worth £200,000), you’ll need a mortgage with a 90% LTV. The larger your deposit or equity from a previous home, the better the deal you will likely be offered.

To find out roughly how much you can borrow, and therefore how big a deposit you will need to cover the overall cost of the home, you can use our mortgage borrowing calculator. Once you know how much you will need to borrow compared to the value of the property, you will know your LTV. Remember when using the linked calculator to check if the rate you’ve put into it is realistic for the LTV mortgage you’re after, and adjust your calculations if necessary.

First-time buyers will likely have only a 5% deposit, and will therefore need a 95% LTV mortgage. If you look over at our first-time buyer chart, you will see that there are all sorts of mortgages available at this level, from discounted variable ones to fixed deals. You will most likely also notice that the rates on these deals tend to be much higher than on mortgages at lower LTVs. So, the more equity/deposit you have to offer, the better the mortgage deals you can expect to be offered.

What fees will I pay?

As with other mortgage types, there may be arrangement fees to pay on the mortgage you are interested in. Additionally, there will be legal fees, valuation fees and (unless you’re simply remortgaging) moving costs to take into account. With the exception of SVR mortgages, which tend to come with low or no fees (but higher rates), there isn’t much difference between the types of fees you can expect with a fixed rate deal and those on a variable rate offer.

Should I speak to a mortgage broker?

Mortgage brokers remove a lot of the paperwork and hassle of getting a mortgage, as well as helping you access exclusive products and rates that aren’t available to the public. Mortgage brokers are regulated by the Financial Conduct Authority (FCA) and are required to pass specific qualifications before they can give you advice.

 

Speak to an award-winning mortgage broker today

 

MAB is the preferred mortgage broker of MoneyfactsCompare

 

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Mortgage Advice Bureau offers fee free mortgage advice for MoneyfactsCompare visitors that call on 0808 149 9177. If you contact Mortgage Advice Bureau outside of these channels you may incur a fee of up to 1%. Lines are open Monday to Friday 8am to 8pm and Saturday 9am to 1pm excluding bank holidays. Calls may be recorded.

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

What is the longest variable/tracker rate available?

Both discounted variable rate mortgages and tracker rate deals can range from two years up to the entire lifetime of the mortgage. As the end of the overall term may be as much as 30 years away, however, there’s a high likelihood that the interest rate will rise over time, so the product could end up much more costly than remortgaging over several short-term deals. Think carefully and do some calculations before you commit to a variable for term deal, and make sure you can remortgage penalty-free if you change your mind.

Can I pay off my mortgage early?

If your mortgage deal allows overpayments, there’s nothing stopping you from paying more than the required monthly repayment amount. To completely pay off your mortgage while you’re on a deal, you’ll need to contact your lender and make sure that they allow this and don’t charge exorbitant fees for the pleasure.

Will applying for a mortgage affect my credit rating?

If you make an official application, rather than a preliminary query, this will show up on your credit report and therefore influence it. Even a successful application could have a negative effect on your credit score for a little while, as it will count as a new loan. Once it matures a bit and you show that you can keep up with your repayments, your credit score should move upwards again and could even surpass its previous rating.

Pros and Cons of Variable Rate Mortgages

  • Lower payments. If the rates fall your monthly repayments will fall.
  • A reward for risk. By taking the risk of rates rising, your lender may offer you a more competitive rate than they would with a fixed rate deal.
  • Potential for future higher payments. If rates rise your monthly repayments will also rise.
  • More careful budgeting. Your monthly budgeting plan will need to be more flexible to accommodate the risk of rising rates.
  • Be aware. Make sure you keep up-to-date with interest rate rises and pay careful attention to any communication from your lender, as it may be notice that your mortgage rates are increasing or decreasing.

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