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A standard variable rate (SVR) is the default interest rate a mortgage moves to once a fixed or tracker deal ends, if you haven’t arranged a new one. It’s set by the lender, can change at any time, and is usually higher than the rates available on fixed or tracker deals.
How is the SVR set?
Each lender decides its own SVR and can review it whenever it chooses, often in response to wider changes in interest rates, though it isn’t required to move in step with them. Because it’s variable, your monthly payment can change if the lender adjusts its SVR, unlike a fixed rate, which stays the same for the length of the deal.
There is no single SVR across the market. Every lender publishes its own, and it can differ noticeably from one lender to another. If you want to know what applies to your mortgage specifically, check your annual mortgage statement or your lender’s website.
Why is the SVR usually higher?
Fixed and tracker deals are often priced to attract new or renewing customers, sometimes alongside a product fee, and lenders review them regularly to stay competitive. The SVR doesn’t have the same competitive pressure, since it applies by default rather than being something people actively choose, so lenders have less reason to keep it low.
| Fixed or tracker deal | Standard variable rate | |
|---|---|---|
| How long it lasts | A set term, often 2 to 5 years | Indefinite, until you move to a new deal |
| Typical level | Usually lower | Usually higher |
| Changes during the term | No, for a fixed rate | Yes, whenever the lender reviews it |
| Product fee | Sometimes | Usually none |
| Early repayment charge if you leave | Often, during the deal | Usually none |
Why do people end up on the SVR without meaning to?
Drifting onto the SVR is rarely a deliberate decision. It usually happens because a deal end date passed unnoticed, a product transfer offer sat unopened, or an application for a new deal took longer than expected and the old one ran out first. Lenders often write to remind customers before a deal ends, but the letter can be missed among other post, especially if it arrives during a busy or stressful period.
Some people also assume they’ll be moved automatically onto a similar rate, when in fact nothing happens unless you actively choose a new deal or product transfer. Checking your deal end date yourself, rather than relying only on a reminder, is the safest approach.
Do you pay an early repayment charge to leave the SVR?
Usually not. Most lenders don’t apply early repayment charges (ERCs) to the SVR, which is one reason some people stay on it deliberately for a short period, for example if they expect to sell the property soon. Our guide on early repayment charges explained covers when ERCs do and don’t apply in more detail.
How do you avoid drifting onto the SVR?
Because the SVR applies automatically once a deal ends, avoiding it means arranging something before your current deal finishes. Many lenders let you choose a new deal a few months ahead, often 3 to 6 months before the end date, whether that’s:
- a product transfer with your existing lender, often without a full affordability assessment where you’re not borrowing more
- a remortgage to a new lender, which usually involves a fuller assessment and potentially a wider choice of deals
- a further advance, if you also want to borrow more, which our guide on what a further advance is explains
Diarising your deal end date, and checking your options a few months ahead, is the simplest way to avoid unplanned time on the SVR.
What if you’re already on the SVR?
If your deal has already ended and nothing was arranged, you’re not stuck there permanently. You can usually still ask your existing lender about a product transfer, or look at remortgaging to a new lender, at any point. Because there’s typically no ERC to leave the SVR, moving off it as soon as you’ve compared your options often makes sense.
Some people worry that having been on the SVR for a while, or having missed a deal end date, will count against them when they apply for a new deal. In most cases it doesn’t, provided your payments have stayed up to date throughout. What lenders look at more closely is your payment history and wider credit file, not simply how long you’ve spent on a variable rate.
Does the SVR affect how much you can borrow?
Because the SVR can be higher than a fixed or tracker rate, it’s sometimes used in affordability calculations as a cautious reference point, particularly the stress test lenders apply when checking you could afford higher rates in future. This is a general feature of how lenders assess affordability, not something specific to being on the SVR itself, and it applies whether or not you’re currently paying it.
What changes if you have adverse credit?
The SVR itself works the same way whatever your credit file looks like, but adverse credit can affect how easily you can move off it. A CCJ, default or mortgage arrears that has appeared since you took out your mortgage might make a new lender more cautious, while your existing lender may still be able to offer a product transfer without a full affordability assessment, as our page on product transfers with bad credit explains.
If you’re behind on payments and worried about what happens when your deal ends, contact your lender early. Lenders must treat struggling borrowers fairly and consider options such as a payment arrangement, and free, impartial advice is available from MoneyHelper, StepChange and National Debtline if your budget is under strain.
Frequently asked questions
Is the SVR the same for every lender?
No. Each lender sets its own standard variable rate, and there is no single UK-wide figure. Lenders can also change their SVR at any time, usually in response to wider interest rate movements, so two people with mortgages at different lenders can be on quite different SVRs.
Can I stay on the SVR on purpose?
Some people do, usually because they expect to sell or repay the mortgage soon, or because they want the flexibility of no early repayment charges. It's rarely the cheapest long-term option, so it's worth comparing the cost of staying against a new deal before deciding.
Does the SVR change during a fixed deal?
No. While you're in a fixed-rate deal, your rate stays the same regardless of what happens to the lender's SVR or wider interest rates. The SVR only becomes relevant once your fixed or tracker deal ends and no new deal has been arranged.
How do I find out my lender's SVR?
Your mortgage offer, annual statement or lender's website will usually show the current SVR, alongside your current rate and payment. If you're not sure whether you're already on it, check your most recent statement, log into your online mortgage account, or ask your lender directly for a straight answer.