Moneyfacts.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfacts.co.uk will always be from email@example.com. Be Scamsmart.
A standard variable rate (SVR) is a type of mortgage interest rate that you are most likely to go onto after finishing an introductory fixed, tracker or discounted deal.
Some lenders will also let you take out a mortgage on their SVR, but this is usually the most expensive option.
An SVR mortgage means your payments can go up or down according to changes in interest rates.
Unlike tracker mortgages, SVRs do not track above the Bank of England Base Rate at a set percentage. Instead, the rate you pay on an SVR mortgage will be determined by your mortgage lender. So, if the Bank of England Base Rate went up by 1%, your lender could choose:
Mortgage lenders can also increase or decrease their SVR at any time – not only after Base Rate changes.
When on an SVR mortgage, you won't normally have to pay an early repayment charge if you want to pay off your mortgage sooner or remortgage to a new deal. However, SVRs can be quite expensive – certainly more so than the best tracker rate mortgages available.
Standard Variable Rate is a mortgage without any bells or whistles so it’s likely there are better deals out there – If you are on an SVR its’ probably a good idea to start investigating a new mortgage deal.
Disclaimer: This information is intended solely to provide guidance and is not financial advice. Moneyfacts will not be liable for any loss arising from your use or reliance on this information. If you are in any doubt, Moneyfacts recommends you obtain independent financial advice.