Variable rate

Dogsarethebest2025

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 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. 

Ayr_Rage

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%

grumpy_codger

At Barclays I see 

our 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%

QrizB

grumpy_codger said:

At Barclays I see 

our 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:

https://www.landc.co.uk/mortgages/product/svr-watch

ACG

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. 

Altior

Tracker might be an option, with no ERC. It tracks the base rate, but typically a smaller margin than the SVR. 

Isthisforreal99

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.

Dogsarethebest2025

Isthisforreal99 said:

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.

Not at all. To be perfectly honest we bought our house at 20 years old. Didn’t have family or anyone who owns a home to give us advice and due to covid at the time we just rushed into it only caring about what  we pay monthly. You live and you learn I guess. Now we know better. 

Ordinary_Yet_Unique

Just curious about where you are going to live after selling your current house. You say you are not buying another house.

BikingBud

Dogsarethebest2025 said:

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 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. 

Have you asked what your follow on rate might be.

There are differences between SVR and follow on rate.