Would you like a mortgage that has lots of flexibility but offers very little security? Then you might want to hear about Variable Mortgages.

So how does a Variable Mortgage work?

Each lender sets their own Variable rate, and some will be higher than others. This means you will be at the mercy of whatever your lender deicides to set theirs at.

Currently, they all sit around 7%.

Some lenders also offer a Discounted Variable Rate, which works a little bit like a Tracker Rate. But I won’t be looking at that today.

So is there a benefit to sitting on a higher Variable Rate?

Well, if you are on the lenders variable rate, you can make unlimited overpayments and there is usually no early repayment charge to clear your mortgage.

So if you are in the process of selling your home, sitting on the Variable rate might be a good option to avoid any Early Repayment Charges.

But always speak to a qualified mortgage adviser who can give you the best advice.

Aitken Financial Services are award winning mortgage advisers based in Edinburgh who specialise in helping First Time Buyers. Get in touch to book your FREE mortgage discovery call.