Variable Rate Mortgages

This is the traditional mortgage, whereby the interest rate is the standard base rate, which varies during the term of the mortgage according to market conditions

Because the Lender isn't trying to second guess interest rate trends, redemption penalties are much lower on these mortgages, if they apply at all.
Some Lenders can also build in much greater flexibility than you find in any other type of mortgage loan.
They are a good option if you feel mortgage rates are likely to be low in the early years... you can always re-mortgage later.

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