Compare the best variable rate mortgages UK 2024

Variable rate mortgages offer flexibility, handy features and some of the most competitive rates on the market.

Variable rate mortgages, as the name suggests, have an interest rate that can and will fluctuate over the mortgage's lifetime. These fluctuations can be influenced by changes in the Bank of England (BoE) base rate, but other factors can also play a part, such as the lender managing risk or changes in the economy.

This guide explains the features of variable rate mortgages to help you decide whether they are the right product for you.

1 - 15 of 103
Name Product Initial rate Revert rate (SVR) Maximum LTV Overall cost for comparison Cashback Apply link
Nationwide BS 2 years Variable
5.44% variable (Base Rate plus 0.19% for up to 40 Years)
N/A
75%
7.8% APRC
View details
CASHBACK
Nationwide BS 2 years Variable
5.54% variable (Base Rate plus 0.29% for up to 40 Years)
N/A
75%
7.8% APRC
Eligible customers can receive up to £500 cashback on completion. T&Cs apply.
View details
HSBC 2 years Variable
5.54% variable (Base Rate plus 0.29% for up to 25 Years)
N/A
75%
7% APRC
View details
HSBC 2 years Variable
5.54% variable (Base Rate plus 0.29% for up to 25 Years)
N/A
75%
7% APRC
View details
Halifax 31/08/2026 Variable
5.58% variable (Base Rate plus 0.33% for up to 40 Years)
N/A
75%
8.3% APRC
View details
Lloyds Bank 31/08/2026 Variable
5.58% variable (Base Rate plus 0.33% for up to 40 Years)
N/A
75%
8.3% APRC
View details
Halifax 31/08/2026 Variable
5.58% variable (Base Rate plus 0.33% for up to 40 Years)
N/A
75%
8.4% APRC
View details
Lloyds Bank 31/08/2026 Variable
5.58% variable (Base Rate plus 0.33% for up to 40 Years)
N/A
75%
8.4% APRC
View details
CASHBACK
Nationwide BS 2 years Variable
5.59% variable (Base Rate plus 0.34% for up to 40 Years)
N/A
75%
7.8% APRC
Eligible customers can receive up to £500 cashback on completion. T&Cs apply.
View details
Yorkshire Building Society 31/07/2026 Variable
5.59% variable (Base Rate plus 0.34% for up to 40 Years)
N/A
75%
7.4% APRC
View details
Yorkshire Building Society 31/07/2026 Variable
5.59% variable (Base Rate plus 0.34% for up to 40 Years)
N/A
75%
7.4% APRC
View details
CASHBACK
Barclays Mortgage 2 years Variable
5.61% variable (Base Rate plus 0.36% for up to 40 Years)
N/A
75%
8.4% APRC
Eligible customers can receive up to £250 cashback on completion. T&Cs apply.
View details
Nationwide BS 2 years Variable
5.64% variable (Base Rate plus 0.39% for up to 40 Years)
N/A
75%
7.8% APRC
View details
HSBC 2 years Variable
5.64% variable (Base Rate plus 0.39% for up to 40 Years)
N/A
80%
7% APRC
View details
CASHBACK
Nationwide BS 2 years Variable
5.64% variable (Base Rate plus 0.39% for up to 40 Years)
N/A
75%
7.8% APRC
Eligible customers can receive up to £500 cashback on completion. T&Cs apply.
View details
loading

Think carefully before securing debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.

How do variable mortgages work?

A variable rate mortgage has an interest rate that can change over time. Your lender might cut the rate due to economic conditions or decide to raise it. This means over a year, your mortgage rate (and your monthly repayments) might increase or decrease.

By comparison, fixed rate mortgages don’t change during the fixed period. This offers more certainty and can be better if you’re on a strict budget. However, variable rates tend to be lower than fixed rates and may have fewer fees. They can also be more flexible.

How do I compare variable rate mortgages?

Consider the following factors when comparing variable rate mortgages:

  • Eligibility. Different lenders have different requirements when it comes to the types of properties they will finance and the types of borrowers they accept. Ensure the mortgages you’re comparing are available for your situation, including the type of property, your income source and your deposit size.
  • Interest rates. One of the biggest factors to consider is the interest rate. A lower interest rate means lower monthly repayments. It’s a good idea to use a repayment calculator to find out what your repayments will look like with the given interest rate. Add an extra 1% or 2% on top to see what your repayments would be should interest rates rise.
  • Fees. As well as the interest rate, it’s important to consider the fees that might be charged. Many mortgages charge an upfront arrangement fee, for instance. In some cases, mortgages with a low interest rate might charge a higher fee, and it could work out cheaper to choose a fee-free mortgage with a higher interest rate. Do some calculations to help you work this out. In addition, there might be fees if you want to exit your mortgage deal early or make overpayments.
  • Features. What features you choose to add to your comparison depends on how you want to use your mortgage. If you’d like to use any savings you have to reduce the amount of interest you pay, you could look for an offset mortgage. If you want a mortgage that allows you to make overpayments, look for one that has no restrictions and lets you do this penalty-free.

What is an Offset Account

These are mortgages that are linked to your savings account. Your savings will be offset against your mortgage’s value. This means you’ll only pay interest on your mortgage balance minus your savings balance, effectively reducing the amount of interest you pay. Your savings won’t be used to repay any of your mortgage; they just save you interest. But note that you won’t earn interest on your savings.

The pros and cons of variable rate mortgages

To decide if a variable rate mortgage is suitable for you, start by weighing the benefits and risks.

Pros

  • Features. Many variable rate mortgages come with useful features, such as the ability to make additional repayments and pay off your mortgage early without penalty.
  • Easy to remortgage. When you opt for a variable rate loan, you often have the flexibility to remortgage with another lender to secure a more competitive deal whenever you want to. By contrast, many fixed rate mortgages charge high early repayment fees if you want to get out of the deal before the term’s end.
  • Lower interest rates. When interest rates are low, variable rate mortgages can be more competitive than fixed rate deals.

Cons

  • Repayments can go up. If interest rates rise, your monthly repayments are likely to increase, which could make them unmanageable.
  • Difficult to budget. If your rate is fluctuating regularly, it can be difficult to plan an accurate budget. You might have less money to allocate to other expenses if your mortgage repayment rises.

Talking to a fee-free mortgage broker can help you decide which type of mortgage works best for your personal and financial circumstances. ”

Rachel Wait, personal finance expert

Types of variable rate mortgages

Couple talking with a brokerThere are a few specific types of variable mortgage rates, with some important differences between them:

  • Standard variable rate (SVR) mortgages. This is the rate your lender moves you on to when your current mortgage deal comes to an end – usually after 2,3 or 5 years. The rate is set by the lender, and it can go up or down by any amount at any time. As it’s usually uncompetitive, it’s best to switch to a new deal as soon as possible.
  • Tracker mortgages.This is a type of variable rate mortgage in which the interest rate you are charged tracks another rate, usually the Bank of England base rate. This means that if the base rate (which is currently 5.25%) goes up or down, your mortgage lender also adjusts its interest rate accordingly. But it doesn’t mean your provider will match the rate set by the BoE – usually, most mortgage lenders set their interest rates at a certain margin above the BoE base rate.
  • Discount rate mortgages. This is another type of variable rate mortgage in which the mortgage lender gives you a discount on its standard variable rate for either a set period (for example, 2 or 5 years) or for the mortgage’s entire term.

If you’re looking for a more specialised type of variable mortgage like some of the ones listed above, you should consider contacting a mortgage broker to get some free, expert guidance.

What is the difference between an SVR and a tracker rate?

Tracker rate mortgages work in a similar way to standard variable rate mortgages. The difference is that tracker mortgages track the BoE base rate, while a lender’s SVR doesn’t necessarily have any link to the base rate and is decided by the lender.

Tracker mortgages are always a set percentage above the base rate. So, if your mortgage was 1% above it and the base rate was 4.25%, you’d pay 5.25%. If the base rate rose to 5.25%, your mortgage rate would be 6.25%.
By comparison, although an SVR will likely go up and down with the base rate, it doesn’t track it by a set percentage.

Tracker mortgages enable you to benefit from lower rates when the base rate is cut. But they also mean your monthly repayments can shoot up if the base rate rises.

Anyone considering a tracker should try to secure one with either no early repayment charge, making it free to leave for another deal, or with a cap on how high rates can go.

While your tracker mortgage rate is low, you can take the opportunity to overpay on your mortgage, shortening the total time it takes you to pay off your mortgage and cutting the amount of interest you pay.

Standard variable rate vs fixed-rate mortgages

An SVR mortgage offers you flexibility since you can generally remortgage or change lenders without facing a fee. However, the amount you pay in interest each month can change, so you need to make sure you can afford the rate even if it increases in the future. What’s more, SVRs tend to charge higher rates compared to other deals on the market, so it’s best to get off it as soon as you can.

For certainty over your interest payments, a a fixed-rate mortgage, where your rate will be set for an agreed period (often 2, 3 or 5 years) may work better for you. But early repayment fees can be high.

Bottom line

Variable rate mortgages can help to keep your monthly mortgage repayments low when the base rate falls, plus they often allow you to switch deals with no early repayment charge. But if you are thinking about applying, it’s crucial to consider whether you’d be able to afford your repayments if interest rates rose. If you can’t, you might be better off with a fixed rate deal.

More questions about variable rate mortgages

Choosing the right type of mortgage is complex. Here are a few more specific questions and scenarios that might be relevant to you.

We show offers we can track - that's not every product on the market...yet. Unless we've said otherwise, products are in no particular order. The terms "best", "top", "cheap" (and variations of these) aren't ratings, though we always explain what's great about a product when we highlight it. This is subject to our terms of use. When you make major financial decisions, consider getting independent financial advice. Always consider your own circumstances when you compare products so you get what's right for you. Most of the data in Finder's comparison tables has the source: Moneyfacts Group PLC. In other cases, Finder has sourced data directly from providers.

More guides on Finder

Go to site