The three kinds of variable
"Variable" covers three quite different products. The difference matters, because only one of them is contractually tied to anything.
- Tracker
- Follows a published reference rate plus a fixed margin. If the reference rate moves 0.25%, your rate moves 0.25%. Transparent, and the movement is not at our discretion.
- Discounted variable
- A discount off our standard variable rate for an initial period. The discount is fixed; the rate it discounts is not, so we can move the underlying rate.
- Standard variable rate (SVR)
- Our default rate, set by us. This is what a loan reverts to when an initial period ends. It is rarely the best available option.
If transparency matters most
Choose a tracker. The rate is tied to something published and external, so you can see exactly why your payment changed.
Who it suits
- You have headroom in your budget and could absorb a rise without difficulty.
- You may repay early, move, or overpay substantially — most trackers have no early repayment charge.
- You expect rates to fall and want the benefit immediately rather than at the end of a fix.
- You are between properties, or bridging to a longer-term plan.
Test it before you choose it
Run the repayment calculator two percentage points above the current rate. If that monthly figure would cause you difficulty, a fixed rate is the right answer regardless of what the market does.
How and when your payment changes
- A change to the reference rate flows through to your rate within the period stated in your agreement.
- We write to you before your payment changes, showing the old and new amounts.
- Your term stays the same and the payment adjusts — we do not silently extend the loan.
- Rate falls are passed on as well as rises. A tracker moves in both directions by the same mechanism.
For a discounted variable or the standard variable rate, we set the underlying rate. Where we increase it we give advance notice in line with your agreement, and you may repay without penalty within the notice period.
Fixed or variable?
| If you… | Lean towards |
|---|---|
| Need to know the payment to the penny | Fixed |
| Might sell or repay within a few years | Tracker (usually no early repayment charge) |
| Have limited spare income each month | Fixed |
| Want any rate cut passed on immediately | Tracker |
| Are remortgaging and want the lowest headline rate | Discounted variable, with the reversion rate checked |
| Are at the end of a deal and doing nothing | Neither — you are on SVR and paying too much |
Next steps
Documents you may also need
Fixed Rate Mortgages
Your rate and your monthly payment are locked for an agreed period, so the largest bill in your household is a known number.
MortgagesToday's Mortgage Rates
Indicative rates across our fixed, variable and specialist mortgage ranges, and the factors that decide which one you are offered.
MortgagesLending Criteria
What we can lend, to whom, and against what property — published in full so you can check before you apply rather than after.
This document was last updated on 1 August 2026. We publish the current version here at all times; superseded versions are available on request.
If anything on this page is unclear, write to us and we will explain it.