Cashback Remortgages · Mortgage rates
What Is a Standard Variable Rate (SVR)?
A standard variable rate (SVR) is the rate a lender sets for borrowers not on a specific deal. Most people move onto it when a fix or tracker ends, and it is often higher.
How the SVR works
The lender decides its SVR and can change it, so it is not directly tied to the Bank Rate. Moving onto it can noticeably increase your payment. There are usually no early repayment charges, giving flexibility to switch.
It is rarely the cheapest place to stay.
Planning around it
Start comparing new deals before your current one ends so you can switch and avoid drifting onto the SVR. Diarise your deal-end and any early repayment charge dates.
Sources and further reading
General mortgage information, not a personal recommendation. Lender criteria and scheme rules can change. Ask an adviser about your circumstances and a solicitor or tax adviser about legal or tax questions. Your home may be repossessed if you do not keep up repayments on your mortgage. Most buy-to-let mortgages are not regulated by the FCA.
Discuss the next step for your mortgage
Understand your options before you make a decision.