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the operational challenges created by the COVID-19 pandemic, we have temporarily restricted our lending criteria and withdrawn a number of our mortgage products.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