The Bank of England's figures show that as of last November, the average credit card interest rate was 15.89%, while the average interest rate for a standard variable rate mortgage was just 3.98%.
Such swaps had the university paying a fixed rate to, and simultaneously receiving a variable rate from, a counterparty.
For instance, the two cards offered through Banana Republic have variable rates recently at 24% and 25%, higher than the recent average rate of 15% on all variable-rate cards.
The US government has then traded a fixed rate of 0.57 for a bet on the variable rate of US T-Bills over the the next 10 years.
The Bank of England's base rate is still at a record low of 0.5% and many variable rate savings polices on offer from banks and building societies offer less than 1% to their savers.
The same is true of the assumption that the mortgage repayment will rise (it could be a longer-term fixed rate for example), or by how much - we have used the Standard Variable Rate (SVR), but the borrower may be using a mortgage which charges a different interest margin.
All this would be similar to a homeowner forsaking a 4.5% fixed-rate 30-year mortgage for a variable-rate mortgage of nearly 5%.
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In a typical interest-rate swap, one party agrees to exchange a fixed-rate obligation with another that has a floating, or variable, rate exposure.
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Nearly every credit card on the market today is a variable rate card.
Energy suppliers will also have to offer customers their lowest variable rate tariff by default.
Meanwhile, Westpac's variable rate is around 5.86% per annum, while its fixed rates are also above 5%.
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All were former Abbey customers, who were put on standard variable rate (SVR) mortgages after coming off fixed-rate deals.
Home-equity lines of credit allow borrowers to tap the credit line as needed, and the rate is typically variable.
Current borrowers revert to a standard variable rate (SVR) of just 2% above bank rate, so currently paying 2.5%.
The original motion called for the the prompt re-establishment of the democratically endorsed Scottish variable rate of income tax.
According to its 2011 annual report, Ameresco finances some of its landfill gas projects with variable rate bank loans.
Trading Direct, for instance, lends investors who are willing to assume a heavy debt load at a variable rate of 1.25 percent.
So should you go for the variable rate, hoping for the best?
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The variable rate is keyed to the London Interbank Offered Rate (Libor).
The lender said its standard variable rate (SVR) would be cut by 0.15 of a percentage point to 7.34% from 1 November for existing borrowers.
Variable rate bonds should be looking pretty attractive at this point.
Lenders' standard variable rate (SVR) deals are tending to be more attractive than new fixed-rate deals for owners, with interest rates having plunged in recent months.
And the way the program works now, before these changes go into effect, is that the loan program has a variable rate with a cap of 8.25 percent.
Yes, says Strathclyde's Mr Hughes Hallett, but the stock of existing home loans (as opposed to the flow of new ones) is still mostly at a variable rate.
The lender are charging me their highest standard variable rate.
These hedges effectively convert these variable rate bank loans into fixed rate loans, better matching the interest expense from the loans to the income from the landfill gas projects they finance.
Mark Harris, chief executive of mortgage broker SPF Private Clients, explained that most mortgages track a lender's standard variable rate, or the base rate, so most are not directly affected by Libor.
Earlier, in October 2008, the bank had written to some Halifax customers, telling them it would raise the standard variable rate (SVR) 'cap' on their mortgages from 2% above the Bank Rate to 3% above it.
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