Rates
What is a mortgage revert rate?
A revert rate is the variable interest rate your mortgage automatically moves to once its fixed period ends, typically calculated as EIBOR plus a fixed margin set by the bank. Revert rates are often higher than the initial fixed or teaser rate, so it's important to check this figure before choosing a fixed-rate mortgage, not just the headline rate.
Why the revert rate matters
Banks often advertise an attractive fixed rate to win business, but the loan's true long-term cost depends heavily on the revert rate that follows. Two banks offering the same 3-year fixed rate can have very different revert rates, meaning the cheaper-looking loan on day one could be the more expensive one by year four. Since most of a 25-year mortgage is spent on the revert rate rather than the initial fixed period, it deserves at least as much scrutiny.
How to compare revert rates
- Ask for the revert rate in writing before signing, not just the fixed-period rate
- Check whether the revert margin is fixed or can change at the bank's discretion
- Model your payment at the revert rate using a mortgage calculator, not just the fixed-period payment
- Compare the revert rate against the fixed rates currently on offer elsewhere in the market
Illustrative fixed vs revert gap
| Period | Illustrative rate |
|---|---|
| Years 1-3 (fixed) | 3.89% |
| Years 4-25 (revert, EIBOR + margin) | Often 4.5%-5.5%, varies by bank |
What to do when you're approaching the revert date
Most borrowers refinance or renegotiate before the revert rate kicks in, since it's rarely the most competitive rate available. See when to refinance in the UAE and what happens at the end of your fixed period.
Mistakes borrowers make with revert rates
The most common mistake is comparing two fixed offers purely on the fixed-period number and ignoring the revert rate entirely. The second is forgetting the revert date exists and being surprised by a payment increase years later. Both are avoidable by asking for the full rate schedule in writing at the point of application, not after signing.
Run the numbers on your own case
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Last reviewed 28 June 2026