A Variable rate mortgage means the rate of interest you pay is dependant on the interest rate set by the Bank of England. So if the Bank of England rate increases your rate and subsequent repayment will increase and by the same account if the Bank of England rate decreases then your repayment will be lower.

Borrowers looking at this type of mortgage need to consider the implications of rate rise and what effect this will have on your repayments. There are potential gains to be made if rates drop but if they go the other way you need to ensure you can afford the increase.

Most Lenders will not charge any penalty fees when moving your variable rate mortgage and you Will normally be able to make overpayments of Unlimited amounts.

There are different forms of variable rate mortgages to choose from, deciding on which is the most suitable will depend on your current situation and how you perceive interest rates movements in the future. At LSA Financial Services our advisers will be more than happy to guide you through the different forms of variable mortgages to help find the most suitable product for your needs. We have detailed the most popular variable rate products below