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Variable rate
Dogsarethebest2025
Posts: 23 Forumite
Hi all,
as of October 2025 our mortgage will move from the fixed rate to variable rate as our house is on the market and we don’t wish to remortgage, we are just selling not buying another house after this one.
as of October 2025 our mortgage will move from the fixed rate to variable rate as our house is on the market and we don’t wish to remortgage, we are just selling not buying another house after this one.
As far as I understand the variable rate is whatever the Bank of England decides which is currently 4%.
Our mortgage currently is on 4.39% interest rate.
So you’d think our mortgage payment would be slightly less in October than what it is now.
But apparently our lender said that we just pay them their interest rate or 4.4% in addition to the 4% Bank of England rate. So all together we are paying 8.4%…
is this legit? I tried contacting them but they keep saying they’ll get back to me but they never do.
is this legit? I tried contacting them but they keep saying they’ll get back to me but they never do.
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Comments
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The BoE rate is NOT the standard variable rate for mortgages.
A lender can set their variable rate as they wish, they have to make money!
You have misunderstood how things work.
Edit : Most major lenders seem to have their standard rate around 6 to 6.75%0 -
At Barclays I seeour variable tracker rate of 1.99% above the Bank of England Base Rate (currently 4.00%),
And ATM all fixed rates are much lower than 5.99%
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grumpy_codger said:At Barclays I seeour variable tracker rate of 1.99% above the Bank of England Base Rate (currently 4.00%),
And ATM all fixed rates are much lower than 5.99%
At Nationwide, the SVR is currently 6.74%.There's a big table of SVRs here:N. Hampshire, he/him. Octopus Intelligent Go elec & Tracker gas / Vodafone BB / iD mobile. Ripple Kirk Hill member.
2.72kWp PV facing SSW installed Jan 2012. 11 x 247w panels, 3.6kw inverter. 34 MWh generated, long-term average 2.6 Os.Not exactly back from my break, but dipping in and out of the forum.Ofgem cap table, Ofgem cap explainer. Economy 7 cap explainer. Gas vs E7 vs peak elec heating costs, Best kettle!1 -
100% legit and normal for every lender.
Your mortgage reverts to the banks (as in whoever your mortgage is with, rather than the bank of england) base rate. Typically that is around 7-9% at the moment.
I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Tracker might be an option, with no ERC. It tracks the base rate, but typically a smaller margin than the SVR.0
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Staggering the level of financial 'awareness' here. Not realise the whole point of fixed/tracker rates is to be below the lenders SVR.
Sorry if this sounds harsh OP.1
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