Standard variable rate mortgages have an interest rate that needs to be paid each month, but can vary from one month to the next. Usually, the interest rate changes proportional to another rate; the Bank of England’s base rate is very influential on variable interest rates, as is the base rate of each lender.

The standard variable rate usually comes with the most options for borrowers, such as being able to pay off more of the mortgage earlier on, or leaving the mortgage deal with little or no get out fees, which makes remortgaging cheaper.

The main benefit is that the Variable rate mortgages have the benefit of having an interest rate that can change. Generally, the rate changes proportionally to the lender’s base rate as time goes on.

Advantages of a variable rate mortgage

  • Lower interest rates – There is a possibility that the interest rate will drop, and therefore bring down the amount needed to pay in any given month.
  • Cheaper – Variable rate mortgages also have the benefit of usually being offered at a lower rate than a fixed rate mortgage.

Disadvantages of a variable rate mortgage

  • Budgeting – The base rate of a lender may rise, and bring the interest rates on the variable mortgage up along with it. This can be surprising when it gets to the end of the month, as the bill needed to be paid can be higher than expected.



House Price





Min (5% of house price)£2,500


Max (30% of house price)£15,000

Interest Rate





Min25 Years

30 Years

Max35 Years

Without Help to Buy

Your deposit£2,5005%
Your mortgage£47,50095%
Monthly Payment£213.30 

With Help to Buy

Your deposit£2,5005%
Help to Buy Loan£10,00020%
Your mortgage£37,50075%
Monthly Payment£168.39 

This calculator is provided to give you basic guidance only. This information is computer-generated and relies on certain assumptions. It has only been designed to give a useful general indication of costs. Its important you always get a specific quote from the lender and double-check the price yourself before acting on the information. We cannot accept responsibility for any errorsand recommend that you obtain exact figures from a specific lender before committing to any mortgage.