Denoting or relating to a loan or savings account with an interest rate that may be changed in response to economic conditions: over the last several years, variable-rate mortgages have proven to be money savers
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- The explosion of variable-rate mortgages and floating rate debt does provide the fodder to satisfy demand emanating from the proliferation of higher-yielding short-term ‘money’ funds.
- An ever-increasing proportion of mortgage financing has come in the form of variable-rate mortgages, where the payment increases as interest rates increase.
- Two-thirds of borrowers in the UK have variable-rate mortgages with most of the remainder on short-term fixed rates.
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