What does follow-on rate mean?

A follow-on rate is the interest rate that comes into effect once the initial fixed-rate period of your mortgage ends. In the UAE, mortgages often start with a fixed rate for a set period, typically between 1 and 5 years.
Once this fixed period is over, the mortgage usually shifts to a variable interest rate, referred to as the follow-on rate. This rate is determined when you first secure the mortgage and is calculated by combining the bank's margin rate with the EIBOR (Emirates Interbank Offered Rate).