Be prepared to fluctuate with a variable rate mortgage.

It means that the interest rate you pay can change, affecting your monthly repayments, and is not guaranteed for your mortgage product term.

Variable rate mortgages are commonly offered at Standard Variable Rate (SVR) with a set discount amount. This discount amount will remain the same but should the SVR go up, or down, the interest rate payable on the mortgage would change accordingly. (SVR is a rate set independently by us, the lender – whilst we take into consideration external factors such as the Bank of England Base Rate, our SVR does not track any external reference points, and can change independently from these.)

For example a mortgage is taken out at SVR, let’s say this is at 5.24%, with a set discount of 2.79%, which results in an interest rate of 2.45%. During the mortgage period:

– should SVR increase to 5.74%, the discount remains at 2.79%, resulting in an interest rate of 2.95%

– should SVR decrease to 4.99%, the discount remains at 2.79%, resulting in an interest rate of 2.20%.

Before entering into a variable rate mortgage contract it is important you carefully check the terms and conditions and fully understand the impact any changes in interest rate will mean for you.

As these interest rates offer different advantages and disadvantages, it is important that borrowers consider each option and decide which one suits them best. Our team of mortgage experts can help to explain the options available to you and what it means for your mortgage, or provide advice in relation to which type of mortgage best suits your individual needs. You can find more information about fixed rate mortgages on our fixed rate mortgage page, or contact us.

All borrowers will be issued with a European Standardised Information Sheet (ESIS) before they sign up to their mortgage, which will outline the terms of the mortgage deal and what will happen at the end of the discounted rate term. Subject to the conditions of your mortgage you’re most likely to be placed on the lender’s SVR and be free to arrange a new mortgage deal.

At Suffolk Building Society we contact our existing borrowers in advance of their mortgage deal coming to an end, explaining the options available to them. Should a borrower opt for one of our [follow-on mortgages] we can usually arrange for this to be in place straight after their existing product expires.

The monthly repayments will vary depending on a number of factors, primarily how much you are borrowing, how long for, the repayment type and what the interest rate is. Whilst you cannot be sure of the monthly repayments throughout your mortgage term, due to the variable rate, you can get an idea of what your initial monthly repayments would be at the current interest rates offered.

Use our handy mortgage finder to find a potential mortgage product then look at our mortgage repayment calculator for an indication of what your variable rate mortgage will initially cost.

Getting a mortgage is not just about how much you can borrow. Mortgage lenders need to ensure the mortgage is affordable and an acceptable risk – for both parties.

This means when you approach a lender:

– They may perform a credit check on you. This is to look at your credit history and any outstanding loans or credit cards you might have, and to assess how ‘good’ you are at managing your money.

– They’ll also ask you for full details of your income and your financial commitments and expenditure, so an affordability assessment can be carried out.

Regardless of whether you speak to us or another lender we all have a responsibility to make sure that the mortgage you want is affordable and that you have enough income to cover the mortgage repayments, even if your circumstances or interest rates were to change in the future.

Age is nothing but a number! We’ve been helping later life borrowers for many years and don’t think age should be a barrier to getting a mortgage, so to find the latest information head over to our later life page.

We’ve been working with [self employed] mortgage borrowers for a while, and don’t see why you should be treated any differently. Yes, we’ll need to see certain documents and carry out the usual affordability assessments, but self employment needn’t be a barrier to getting a mortgage. For the latest information visit our self employed page.