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Variable rate

Credit scores & reports
An interest rate that can change over time based on market conditions or lender decisions.

Overview

Variable rates can rise or fall, which affects your repayments.

They may start lower than fixed rates but can increase.

Why it matters

  • It can make repayments unpredictable.
  • It may save money if rates fall.
  • It carries more risk than fixed rates.

FAQs

Can a variable rate change without notice?

Lenders usually provide notice, but the timing depends on the product terms.

Is a variable rate bad?

Not always. It can be suitable if you can handle payment changes.

Related terms

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