Variable Rate Financial Glossary

What is it? Interest rate can be altered by the account provider as and when they deem necessary, usually when general base rates change. This is also the traditional way that mortgages were arranged before the concept of fixed rates. A variable rate will fluctuate up and down to reflect the true cost of borrowing. Some variable rates may be discounted for a period of time (see Discounted Rates).

Finance Term Definition Added By: Nevaeh

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