Rated Excellent 4.8 out of 5 rating

Home
Mortgages
Variable rate mortgages

Variable-rate mortgages

Compare variable-rate mortgage deals

Get started

Advisers who can look at mortgage rates from across the market
Get an expert-recommended deal
They can help you apply when you're ready

Our expert panel reviews all content. Learn more about our editorial standards and how we operate.

What is a variable rate mortgage?

A variable rate mortgage doesn’t have a set interest rate, so the rate of interest you pay and your repayments can change at any time.

If you’re on a set budget or are fairly cautious, a fixed rate mortgage may be more suitable, as the rate can’t change during a fixed period.

Lenders offer lower initial interest rates for some types of variable rate deals, but they can change quickly, even in an introductory period.

What are the different types of variable rate mortgages?

The best variable rate mortgage for you will depend on your circumstances and needs.

Standard variable rate (SVR)- This is the lender's default mortgage rate if you don’t remortgage. SVRs are usually the most expensive deal available and lenders choose when to increase or decrease them - base rate changes can influence their decision, but won’t necessarily.
Discount rate mortgage- These mortgages are usually offered at a discount on the lender’s SVR - it changes when the SVR does. For example, if the lender has an SVR of 5% and their discount rate is 2% below SVR, you pay 3%. If the SVR is raised to 6% you pay 4% - so the percentage it can increase or decrease by is fixed, but not the amount you pay.
Tracker mortgage- This is based on an external financial indicator - usually the Bank of England (BoE) base rate. This makes it slightly easier to predict when they rise or fall than other variable rate mortgages. The rate is typically set at a percentage above the base rate. The lender decides on that percentage, but the rate only changes if the base rate does. For example, if a lender sets a tracker at 2% above base rate, and the base rate is 4%, you pay 6%. If the base rate falls to 3.5%, your rate falls to 5.5%.

Can I pay off my variable rate mortgage early?

Yes! Standard Variable Rate (SVR) mortgages allow you to repay your mortgage early, either in full or through overpayments, without incurring fees, giving you more flexibility to reduce your debt faster. However, if you have a tracker or discount mortgage, these usually come with an introductory period. Remortgaging or paying off your mortgage before this period ends may result in early repayment charges (ERCs), so it’s important to check your lender’s terms before making extra payments.

What are the advantages and disadvantages of a variable rate mortgage?

Opportunity to save money - Your rate is not fixed, so it can fall at any time, giving you the opportunity to save money.
Lower initial rates - Tracker and discount rates usually start with lower cost introductory periods - so a 2 year tracker-rate is typically lower than a 2 year fixed rate, for example.
Less chance of ERCs - There are no ERCs on an SVR mortgage as it has no set period - so you can remortgage whenever you choose. This may be a good option if you’re expecting a change in the market or plan to move soon. Discount and tracker rates are more likely to include ERCs, especially on introductory deals.
Caps can reduce your risk - If your tracker or discount rate has a cap (or ceiling), your variable rate will not rise beyond this point. For example, if you have a tracker set at 1% above the base rate, but with a cap of 5%, your mortgage wouldn’t rise if the base rate rose above 4%.

No certainty of rates - Whatever type of variable rate mortgage you choose, there's always a chance the rate could rise. This means your mortgage repayments can go up at any time, potentially making them unaffordable.
Not always cheaper - Although tracker and discount rates can be cheaper to begin with, SVR rates are not usually lower than fixed-rate deals, even initially. This is because you’re paying extra for the flexibility to leave anytime and make overpayments.
You may need to pay ERCs - If you’re on an introductory tracker or discount variable rate, there are often ERCs if you want to remortgage before the deal ends. Only an SVR guarantees that you won't have to pay ERCs.
Collars can minimise your savings - When you compare variable rate mortgages be sure to calculate the impact of any collars - most commonly found on trackers. As your rate can never fall below the collar, they may reduce the amount you save if the base rate falls.

What our mortgage expert says

"Variable rate mortgages offer flexibility, allowing homeowners to make overpayments or repay early without penalties in many cases. They can be a smart choice for those who want control over their mortgage and the potential to save on interest, but it’s important to review the terms carefully, especially if your deal includes an introductory period."

Yousif Khaleel Mortgage Expert

Mojo's customer says:

“All my options explained clearly, very helpful! Robin was excellent; he understood our circumstances quickly and provided the right information and advice to enable us to make a good decision.”

Mr A - Mojo Mortgages customer (September 2025)

“Mojo listened to my specific needs and found me the best mortgage deal! I would highly recommend Mojo if you don't know where to start and need to act fast, it cuts all the searching out and gets you what you need.”

David Smith - Mojo Mortgages customer (December 2023)

Mojo is rated

Mojo mortgages have a 4.8 rating based on 7734 reviews
as of 26/09/2025

Learn about different mortgage types

Mortgages

Are a type of loan used to buy a property. The mortgage is secured against the value of the property. <style> </style>

First-time buyer

Are designed to help give you that first step on the housing ladder. <style> </style>

Remortgage

Are for when your current mortgage deal comes to an end.

Interest-only mortgages

Are where you only pay back the interest each month. When your mortgage term comes to an end, you still owe exactly what you borrowed at the start.

Buy-to-let Mortgages

Aren't that different from a regular mortgage. But there are some important differences.

Tips & guides on mortgages

Should I rent or buy?

The first step to getting a house is making the decision about whether it's better to rent or buy.

House viewing checklist

Here's some tips to bear in mind when you view property.

What is exchange of contracts?

The final hurdle before the house is officially yours – swap contracts and insure the building.

Getting a mortgage with a gifted deposit

Buying a house is an expensive process. Gifted deposits can help.

Guarantor mortgages

We look at guarantor mortgages and how they could help you get on the property ladder.

Mortgages: early repayment charges explained

Paying off your mortgage early seems like a good idea, but you could be charged. Here's what you need to know.

See more mortgages guides

Page last reviewed: 26 September 2025

Reviewed by: Yousif Khaleel

YOU SHOULD THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME/PROPERTY. YOUR HOME/PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

The Financial Conduct Authority does not regulate mortgages for commercial or investment buy-to-let properties.

Confused.com is not a mortgage intermediary and makes introductions to Mojo Mortgages to provide mortgage solutions.

Confused.com and Mojo Mortgages are part of the same group of companies.

Confused.com 2nd Floor, Greyfriars House, Greyfriars Road, Cardiff, CF10 3AL, United Kingdom. Confused.com is a trading name of Inspop.com Limited and is authorised and regulated by the Financial Conduct Authority. FRN 310635

Mojo is a trading style of Life's Great Limited which is registered in England and Wales (06246376). We are authorised and regulated by the Financial Conduct Authority and are on the Financial Services Register (478215). Mojo’s registered office is The Cooperage, 5 Copper Row, London, SE1 2LH.

To contact Mojo by phone, please call 0333 123 0012.

Get a variable-rate mortgage