Welcome to CreditWisdom - Variable rate loans

 
The opposite to a fixed rate loan could be considered to be a variable rate loan or mortgage.

Variable rate loans tend to be cheaper than fixed rate loans at the outset as fixed rate loans have to factor in the probability of interest rates increasing.

The interest you pay on a variable rate loan will normally vary with either the base rates of one or more high street clearing banks or the London Interbank Offered Rate (LIBOR).

Variable rate loans tend to be more popular when the financial outlook suggest that interest rates are likely to drop and stay low for an extended period.
 
You should remember that if you do not keep up repayments on a secured loan or mortgage then your home or other security is at risk. Furthermore, CreditWisdom recommend that you seek professional advice prior to obtaining a loan or mortgage. The advice provided by CreditWisdom is meant to supplement professional financial advice and is in no way quantified as professional advice. CreditWisdom will not be held responsible for any losses of any sort, direct or indirect, whether real or perceived that you may incur as a result of visiting the web site.
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