What is a follow-on-rate?

A follow-on rate is the interest rate that applies to your mortgage after the initial fixed-rate period has expired. When you first take out a mortgage in the UAE, you may have a fixed interest rate for a certain period, such as 1-5 years.

After this fixed period ends, your mortgage will typically transition to a variable rate, which is known as the follow-on rate.
The follow-on rate is determined at the time you obtain the mortgage and is calculated by adding the bank's margin rate to the EIBOR (Emirates Interbank Offered Rate).