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What is a variable rate mortgage?

Due to the operational challenges created by the COVID-19 pandemic, we have temporarily restricted our lending criteria and withdrawn a number of our mortgage products. Visit the FAQs for more information.

There are different types of variable rate mortgages. These include Standard Variable Rate, discounted and tracker rate mortgages. With these types of mortgage your payment each month could go down or up, depending on interest rate movements. These include the Bank of England changing base rate or a mortgage lender changing their Standard Variable Rate. A variable rate mortgage may suit you if you are less concerned with fixing your monthly mortgage payment.

Ipswich Building Society allows you to overpay up to 50% of your mortgage when taking a variable rate mortgage.

Residential Standard

2.50% 2 Year Discount Rate 75% LTV

  • VARIABLE RATE of 5.74% with a discount of 3.24% until 2 years from completion, then reverting to 4.00% for 36 months then changing to Ipswich Standard Variable Rate (currently 5.74%)
  • 4.5% APRC
  • Available to direct applicants in England and Wales, intermediaries in our heartland area and selected intermediary partners
  • Available for remortgage up to 75% LTV


Completion Fee Application Fee (Payable with application and non-refundable) Valuation Fee (Payable with application) Higher Lending Charge CHAPS (Fee for transfer of funds to solicitor) Maximum Loan Amount
£800 £199 Based on property valuation. Remortgage: FREE (up to max property value £1m) - £35 £500k

No charge for overpayments of up to 50% of original loan amount
Early repayment charge period ends 2 years from completion
Overpayment of 50% or above - Early repayment charge is 1% of the overpayment
Redemption - Early repayment charge is 1% of the original loan amount

To apply, please speak to one of our expert Mortgage Consultants, based in Ipswich, on 0330 123 0773 - we're happy to discuss your application over the telephone or, if you'd prefer, we can arrange to meet with you at one of our 9 branches across Suffolk.

In the meantime, you may find it useful to look at our mortgage calculator to get an idea of what your monthly payment may be.

To apply for this product visit our Apply and Track section, or give our intermediary sales team a call on 0330 123 1073.

Representative example

A mortgage of £150,000.00 payable over 15 years on our Standard Variable Rate currently at 5.74% with a discount of 3.24%, giving a current rate payable of 2.50% for 24 months, then on our Standard Variable Rate currently at 5.74% with a discount of 1.74%, giving a rate payable of 4.00% for 36 months, follwed by our Standard Variable Rate currently at 5.74% for the remainder of the mortgage term. This would require 24 monthly payments of £1,005.75, followed by 36 payments of £1,101.61, followed by 120 payments of £1,193.78. The total amount payable would be £207,503.56 made up of the loan amount plus interest (£56,214.56), an application fee of £199, a completion fee of £800, a valuation fee of £160, a mortgage funds release fee of £35 and a mortgage exit fee of £95. The overall cost for comparison is 4.6% APRC representative.


Features of our variable rate mortgages


Potential for a lower rate

The monthly payment on your variable rate mortgage could go up or down but as long as you're happy with this, you may be rewarded with a lower rate than if you were on one of our fixed rate mortgages.


A good credit history

We don't use automated credit scoring to assess your suitability, but we do expect a good credit history.


Early repayment charges

You can over pay by up to 50% with our mortgages and not incur any early repayment charges. See the tabs above to check this and other charges.

Unusual construction

Unusual construction

We know houses, just like people come in all shapes and sizes and materials! We can consider a range of construction types as well as the 'yet to be built'.

Your home may be repossessed if you do not keep up repayments on your mortgage.