A reversion rate is the interest rate your mortgage automatically switches to after your fixed-rate period ends. It functions like a variable rate, meaning it can change over time.
For example, if you had a fixed-rate mortgage for three years, once that period ends, your loan will move to the reversion rate. This new rate is typically based on a benchmark, such as the Emirates Interbank Offered Rate (EIBOR), with an additional margin added by the bank—usually around 2% to 3%.
