Variable rate mortgage

[ajd84]

Hi all,  I'm new here.

Don't currently own any property other than my residential one.

Just got back from an initial chat with a mortgage broker, the cheapest product was a variable rate, not surprising.
But its only just dawned on me there are trackers and variable, (and fixed).  I probably assumed a variable would change with the base rate, like a tracker, but the broker says they rarely change.

From what I can see online, they can change at any point?

Can someone provide a bit of clarity and maybe some examples when they would change, by how much etc?  (For 0.4% more the 2 year fixed loos more attractive to me)

 

thanks!

Alan  

[astonthemortgageguy]

A variable rate can change at any point, but as the majority have none or very little penalties to leave at any time, the lender needs to think carefully before putting the rates up. If they put their rates up too much then a large chunk of their customer may remortgage away elsewhere. The lender needs to make sure they move their variable rate in line with what the rest of the market does.