Mortgage rates explained: Variable or fixed

A mortgage is arguably the biggest financial commitment you’ll ever make, so understanding the options available to you is extremely important. Deciding between a fixed or variable mortgage can be confusing. To help you find the right mortgage, we’ve explained below the key features of variable-rate mortgages and how they differ from fixed-rate mortgages.

Variable rate mortgages

A variable mortgage rate is an interest rate which can move up and down at any time, meaning your monthly mortgage payments may occasionally go up or down to match this.

The interest rate on variable mortgages commonly changes when there is a change in a market rate (such as the Bank of England base rate), but there doesn’t need to be a change in a market rate for the variable rate to change. There are different types of variable rate mortgages available – standard variable rate, tracker and discount.

What is a standard variable rate mortgage?

What is a tracker Mortgage?

What is a discounted variable rate mortgage?

What variable mortgages are available with Furness Building Society?

Can I change my fixed-rate mortgage to a variable rate with Furness?

Fixed-rate mortgages

A fixed-rate mortgage is exactly how it sounds, fixed. This means that your interest rate is set for a fixed term, so your repayments will neither go up or down during that time regardless of changes in market rates. 

How does a fixed-rate mortgage differ from a variable rate?

Does inflation affect fixed-rate mortgages?

What happens when my fixed-rate mortgage ends?

What fixed-rate mortgages are available with Furness Building Society?

Can I change my variable rate to a fixed-rate mortgage with Furness?

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