Are you looking for a Variable Rate Mortgage? Rainbow can give you the advice you need for all your mortgages…

What does it mean?

A Variable mortgage is one that’s rate varies over a certain time period. The period is set out at the beginning of the loan and usually is one that is attractive to the mortgagee. The term for the variable part is usually between 2 and 5 years.

So how do they work?

Right this is easy, say for instance the “Bank of England Base Rate” is 5.25% then a mortgage company may set their rates at say 1% to 2% higher depending on the deal. So let’s say 6.25% for arguments sake. Then the Bank of England raises the base rate by 0.25% so it is now 5.5% that means that the new mortgage payment will be that of 6.5%.

These mortgages suit people who wish to take an informed risk. The good points are if the Base rate drops then so does the mortgage payments. What also must be remembered is that the payments will also rise when the Base rate increases as well. Another point to watch is that the mortgage company does not have to pass on the discounts. It is advisable to always read your mortgage offer.

  

Apply now! Get a great deal on a mortgage here

This form will allow a mortgage specialist to find you the best quotes from their product range, with good or poor credit.

It will take less than a minute to complete

Mortgage details

Change
Select the type of loan you require, if unsure select other
Enter the amount you wish to borrow e.g. 100,000
Enter the value of your property e.g. 150,000
Next

Property details

Change
Your current home address
How long have you lived at this address
Next

Your details

Change
Your full name e.g. Mr John Smith
Your date of birth
Your home telephone number e.g. 01234 567890
Your work telephone number e.g. 01234 567890
Your mobile phone number e.g. 07710 567890
Your email address e.g. test@example.com
Do you have any County Court Judgements?
Do you have any Individual Voluntary Arrangements?
Have you ever missed payments?
Have you ever declared bankruptcy?

Apply now in 60 seconds

Good or bad credit

Free Advice for everyone