SVR stands for Standard Variable Rate.
It is the interest rate your lender usually moves you onto once your fixed, tracker or introductory mortgage deal ends.
If you do nothing when your deal expires, you will normally be transferred onto your lender’s SVR automatically.
Why is SVR important?
Because SVRs are often higher than fixed rates.
Unlike a fixed rate, an SVR can move up or down at the lender’s discretion. It is usually influenced by wider interest rate conditions, including changes to the Bank of England base rate.
This means your monthly payment could increase or decrease, but there is less certainty compared with a fixed deal.
What happens when your mortgage moves to SVR?
When your fixed rate ends:
- Your interest rate may increase
- Your monthly repayments may go up
- You are no longer tied into a fixed term
Being on SVR is not necessarily wrong. Some people choose it temporarily if they plan to move house soon or want flexibility.
However, many homeowners only realise they are on SVR once their payment changes.
A simple example
If you had a £200,000 mortgage over 25 years:
- On a 3 percent fixed rate, repayments might be around £950 per month
- On a 6.5 percent SVR, repayments could rise to around £1,350 per month
That difference can feel significant for household budgeting.
Figures are illustrative and depend on your balance and term.
Should you stay on SVR?
That depends on your circumstances.
At Spolton Mortgages, Nick and the team regularly review cases where:
- Staying with the existing lender makes sense
- Switching lender reduces the overall cost
- A short period on SVR is useful before moving home
The important thing is understanding your options before your deal ends.
If you are unsure whether you are currently on SVR or whether your fixed rate is ending soon, we are always happy to check for you.
Your home may be repossessed if you do not keep up repayments on your mortgage.
You may have to pay an early repayment charge to your existing lender if you remortgage.