Variable Interest Rate
A variable interest rate is exactly as the name suggests. Depending on fluctuations in the market, the amount of money you pay back on a loan will fluctuate too.
Most lenders will have a variable interest rate loan product on offer, and many of them will have one that tracks the Bank of England base rate (though they do not necessarily have to do this)...for this reason they have become quite widely known as Tracker loans.
These variable interest rate loans have benefits and hazards, these obviously being that you could end up repaying less or more or your loan than you thought you would. If you play your cards right though, you could do very well out of a variable interest rate loan.
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