A variable mortgage is sometimes referred to as a floating mortgage or a mortgage. How does it differ from a conventional mortgage? It does not follow a standard interest rate fixation. It is variable and changes depending on PRIBOR.
What is a variable mortgage
Variable mortgage is a specific type of mortgage loan, its interest is based on the PRIBOR (Prague InterBank Offered Rate), which is a special type of interest at which banks lend to each other in the domestic interbank environment.
The PRIBOR rate changes regularly. The Czech National Bank publishes it every working day after 1 p.m. on its website. The rate is rounded to two decimal places.
Each instalment can be different for a variable mortgage
This is also one of the specifics of a variable mortgage. The amount of the repayment can vary, so you pay more one month and less the next. The interest rate is based on the rates announced by the CNB and changes according to the current situation on the financial market.