Remortgages Info

As interest rates remain low, a Variable Rate Remortgage could be the right remortgage product for you. If you have found the perfect home but need reassurance regarding which remortgage product to select then researching for this particular type of remortgage is very simple. As the market for variable rate remortgages have increased, the competition has therefore grown and the amount of deals to choose from has increased rapidly.

A variable rate remortgage is simply a loan that is issued by a lender that is secured against a form of your property. The variable rate related to the interest rate that the lender uses to charge you interest. This part is calculated using the Bank of England base rate. The base rate is currently at one of the lowest points it’s ever been and therefore variable rates that are set by lenders are also at their lowest. This is due to lenders having to set their rates around the Bank of England rates.

As variable rate remortgages tend to have lower interest rates, it has made them a popular choice in more recent times; however, the downside is that the remortgage rate can be changed at any time. If the Bank of England decided to increase their base rate at any time, the variable remortgage rate would also rise. Therefore, although you will typically be paying less for your remortgage, if the rates were to increase, your monthly remortgage repayments would also increase due to the fluctuation of interest rates. However, the advantage is that if there was a reduction in the base rate, the variable remortgage rate would decrease which in turn would reduce your monthly remortgage repayments.