SVR borrowers get a reprieve from rate rises | will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by will always be from Be Scamsmart.

MONEYFACTS ARCHIVE. This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.


Lieke Braadbaart

Online Writer
Published: 11/12/2017

Customers on their provider's standard variable rate (SVR) will be delighted to hear that they might be spared from the full 0.25% base rate rise. Figures from the not yet published Moneyfacts Mortgage Treasury Trends Report show that the average SVR has only increased by 0.14% since 1 November.

Providers proceeding with caution

Given that providers' SVRs – the rates borrowers are usually put on after their initial deal ends – tend to be higher than other rates on offer, it's good news that these rates have not seen too much of an increase. Indeed, Moneyfacts' finance expert Charlotte Nelson said that "just 56% of providers have passed on a rise to their SVR, with seven of them choosing to increase their rates by less than the 0.25%, which has caused the average SVR to rise more modestly."

This modest rise is likely due to providers wanting to hold on to their borrowers. Nonetheless, the rate is higher than it was at this time last year, as can be seen below, so those on their provider's SVR may want to consider switching to a better deal.

Dec-16 Jun-17 Nov-17 Dec-17
Average SVR 4.62% 4.59% 4.60% 4.74%

Moneyfacts Treasury Report

But beware of rate rises elsewhere

While variable rate mortgage deals still have on average much lower rates compared with the average SVR, a lot of these deals have seen the full base rate increase of 0.25%. This has resulted in the average two-year tracker mortgage rate increasing from 1.77% in November to 2.02% this month – up 0.25%.

Despite widespread increases, borrowers could still save money by switching from the SVR, as Charlotte explains: "When the highest SVR is currently priced at 6.08%, it may be little consolation to know that some SVRs have not seen a rate rise. In fact, borrowers could save £192.66 a month [based on a £150,000 borrowing amount over 25 years on a repayment-only basis] by switching from the average SVR to the average two-year fixed rate (2.35%)."

So, borrowers coming off a fixed rate mortgage will still have plenty of incentive to switch from their SVR. This is especially the case as our experts suggest that the base rate rise might have shifted the mindset of both the Bank of England and providers, which may set the ball rolling for further (base) rate rises in the future.

What next?

Have a look at the Best Buy fixed mortgage deals to see if remortgaging could be for you

Use our mortgage calculator to find the deal that best suits your situation


Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time. Links to third parties on this page are paid for by the third party. You can find out more about the individual products by visiting their site. will receive a small payment if you use their services after you click through to their site. All information is subject to change without notice. Please check all terms before making any decisions. 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.

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