Variable Rate Mortgages in the UAE

Benefit from potential rate reductions with a UAE variable rate mortgage — we find the most competitive EIBOR-linked products available.

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Variable rate mortgages in the UAE are typically linked to the Emirates Interbank Offered Rate (EIBOR) plus a fixed margin set by the lender. When EIBOR falls, your repayments fall; when it rises, your payments increase accordingly. Variable rate products often carry lower initial rates and fewer early settlement restrictions than fixed products, making them well-suited to buyers who expect to sell or refinance within a few years or who want flexibility to overpay.

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Why Choose Bradgate Heights

Lower Initial Rate

Variable rate mortgages frequently offer lower starting rates than comparable fixed products, reducing your monthly payments during the early years of ownership.

Flexibility to Overpay

Many UAE variable rate products allow overpayments or early settlement without significant penalty, giving you greater control over your outstanding mortgage balance.

Benefit from Rate Cuts

If EIBOR falls, your mortgage rate and monthly payment fall automatically, passing on the benefit of lower borrowing costs without the need to refinance.

Short-Term Ownership Suitability

If you plan to sell or switch properties within two to three years, a variable rate avoids early settlement penalties and allows a clean exit without a fixed-rate break cost.

How It Works

Check Eligibility

We assess your financial profile, intended holding period, and rate outlook preferences to determine whether a variable rate is the most suitable choice for your circumstances.

Choose Product

We compare EIBOR-linked variable rate products across our lender panel, focusing on the margin over EIBOR, any rate caps in the product, and overpayment flexibility.

Application

We submit your application to the chosen lender and manage the underwriting process through to formal mortgage offer, handling all lender communications.

Completion

We complete your variable rate mortgage and provide guidance on how to monitor EIBOR movements so you are well placed to refinance if rates rise significantly.

Frequently Asked Questions

What is EIBOR and how does it affect my UAE mortgage?+

EIBOR is the Emirates Interbank Offered Rate, a benchmark interest rate at which UAE banks lend to each other. Most variable rate mortgages are priced at a fixed margin above the one-month or three-month EIBOR rate, so your mortgage rate changes as EIBOR moves.

Is there a cap on how high a UAE variable rate mortgage can go?+

Some UAE lenders offer variable rate products with rate caps, limiting the maximum interest rate regardless of EIBOR movements. Not all products include a cap, so we clarify this as part of every product comparison we present.

Can I switch from a variable rate to a fixed rate mortgage in the UAE?+

Yes, refinancing from a variable rate to a fixed rate is common in the UAE, particularly when EIBOR is rising. We assess the full cost of switching, including any early settlement fees, to confirm the switch is financially worthwhile.

Are variable rate mortgages available for investment properties in the UAE?+

Yes, variable rate products are available for both owner-occupied and investment properties in the UAE. The margin over EIBOR may be slightly higher for investment properties, reflecting the additional risk perceived by lenders.

How often does the rate change on a UAE variable rate mortgage?+

The frequency of rate changes depends on which EIBOR tenor your mortgage is linked to. One-month EIBOR-linked mortgages reprice monthly, while three-month EIBOR-linked products reprice quarterly. Your lender will notify you of each rate change in advance.

Ready to get started?

Speak to a specialist today for a free, no-obligation consultation. We compare 20+ UAE lenders to find the mortgage that is right for you.

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