The interest on a variable rate rises and falls as changes in interest rates occur.

There are different kinds of variable rates offered by lenders including a standard variable rate, a tracker rate or a discounted rate mortgage.

Your monthly mortgage repayments are most likely to fluctuate whilst being on a variable rate unlike those on a fixed rate for example meaning your mortgage repayments could be different each month.

The rate you will pay is entirely dependent on your mortgage lender, with changes to it not necessarily being affected by the Bank of England Base Rate.

Standard variable rate mortgages are offered by most lenders. It is entirely up to the lender as to what changes are made to the rate and when. Some will take the Bank of England Base Rate into consideration whilst others will not.

A standard variable rate is also the type of rate you are mostly placed onto after finishing a certain deal such as a fixed period rate.  It may be worth considering a remortgage at this point however standard variable rates do come with certain benefits. This includes being able to make overpayments – which could help you pay off your mortgage sooner and save you money in interest overall.

Your home may be repossessed if you do not keep up repayments on your mortgage.