With bad credit on your file, it can happen because a deal was not offered, an application did not go through, or the switch was simply missed. The good news is that most SVRs carry no early repayment charge, so you are usually free to move as soon as a better option is available.
This page looks at why people end up on the SVR, whether a product transfer or remortgage is realistic once you are already there, and what to check before you compare. For the FCA rule that lets many people switch without a full assessment, see our main page on product transfers with bad credit.
On this page
This page covers
- Reason for remortgaging
- Finding a new dealMoving off a standard variable rate is one of the most common reasons to remortgage.
Read the main guide: Getting a product transfer when your credit has got worse
In short
- The SVR usually costs more each month than a fixed or tracker deal, and there is no fixed end date.
- Most SVRs carry no early repayment charge, so you are usually free to move once an option comes up.
- Being on the SVR does not itself appear as a mark on your credit file.
- Struggling to keep up SVR payments can lead to missed payments or arrears, which does affect your file.
Why are you on the standard variable rate?
There are a few common reasons people find themselves on the SVR with adverse credit on their file, and they lead to different next steps.
- A deal simply was not arranged in time. Many lenders allow a new deal a few months before the old one ends, and this window can be missed.
- A product transfer was declined or not offered. The FCA rule that lets lenders switch customers without a full assessment does not oblige them to offer a deal, particularly if you are behind on payments.
- A remortgage application did not complete. Fewer lenders may consider recent adverse credit, and an application can fall through late in the process.
- You chose to wait. Some people move to the SVR deliberately, to let an old CCJ or default age before applying elsewhere.
Knowing which applies to you shapes what to try next. If your mortgage is in arrears, see remortgaging with mortgage arrears.
What does the SVR actually mean for your payment?
The SVR is set by your lender and can move up or down, usually in line with wider interest rate changes, and it is typically higher than the fixed or tracker rate you had before. There is no fixed term, so you stay on it, and pay whatever it is set at, until you arrange something else or your lender changes it.
| A fixed or tracker deal | The standard variable rate | |
|---|---|---|
| Rate | Set for an agreed period | Can change with little notice |
| End date | Fixed, known in advance | None, until you move |
| Early repayment charge | Often applies | Usually none |
| Typical cost | Usually lower | Usually higher |
General patterns, not figures for any specific lender.
Contact your lender before you miss a payment. Lenders must treat struggling borrowers fairly and consider options such as a payment arrangement. MoneyHelper and StepChange offer free, confidential advice.
Can you move off the SVR now?
Often, yes, and the lack of an early repayment charge on most SVRs is one advantage. What is realistic depends on why you ended up on it and how your credit file looks today.
- Ask your current lender for a new deal. If your only change is time passing, a product transfer may still be available without a full affordability check.
- Get an up to date credit report first. If the reason you were declined before has changed, for example a default now satisfied or older, that may open up more options.
- Compare other lenders. Some that work with adverse credit may still consider you, particularly with a reasonable amount of equity.
- Review your loan to value. If your home’s value has risen or the balance has fallen, a lower LTV can widen your options.
If your credit file has been the sticking point, see remortgaging with a low credit score or remortgaging with defaults.
Does being on the SVR itself harm your credit file?
No. Moving onto the SVR is not recorded as a negative event, and it does not appear as a new mark on your file. The risk is indirect: if the higher payment is harder to afford and you fall behind, missed payments and arrears on the mortgage itself will show, and those can matter a great deal to a future lender. It is worth reviewing your budget as soon as you move to the SVR, so any shortfall is caught early.
What to check before you compare your options
A little preparation avoids applications that are unlikely to succeed, and unnecessary hard searches on your file.
- Confirm there is genuinely no early repayment charge on your current SVR, in writing from your lender.
- Get your statutory credit report free from Experian, Equifax and TransUnion and check the current status of every entry.
- Ask your lender in plain terms why any earlier deal or application did not go ahead.
- Get an up to date estimate of your home’s value and work out your current LTV.
- Note your income and outgoings as they stand now, including any DMP or CCJ payments.
What may affect your options while on the SVR
Once you are on the SVR, these are the points most likely to shape whether your lender or another one can help.
| Factor | Why it matters |
|---|---|
| Why the last deal ended without a switch | A missed window is treated very differently from a decline due to arrears. |
| Current mortgage payment record | Whether payments on the SVR itself have been kept up on time. |
| Status of the original credit issue | Whether a default, CCJ or other entry has since been settled or has aged. |
| Loan to value | Any change in your home’s value or mortgage balance since your last deal. |
| Time since the SVR started | How long you have been paying the higher rate, and whether it has already changed. |
| Income and affordability now | Whether your current income would pass a lender’s stress test at today’s rates. |
| Early repayment charges | Most SVRs carry none, but always confirm with your own lender in writing. |
These are general points, not lender rules. Each lender sets and changes its own criteria.
Information an adviser may ask for
You don’t need all of this to make an enquiry. It helps to know where to find it, because an adviser is likely to ask about most of it.
- The date your last deal ended and when you moved to the SVR
- Your current SVR and how your payments compare with your previous deal
- A written note from your lender confirming any early repayment charge
- Recent credit reports from all three agencies
- Details of why a product transfer or previous application did not go ahead
- An up to date estimate of your property’s value
- Proof of your current income
Frequently asked questions
How long can you stay on the standard variable rate?
There is no time limit. You can stay on it as long as your lender allows and you keep paying, though most people move off it once a better deal becomes available, because the SVR is usually more expensive than a fixed or tracker rate.
Will my lender automatically offer me a new deal off the SVR?
Not necessarily. Some lenders contact customers with offers, but many expect you to ask. If you were declined a deal before, it is worth checking with your lender directly whether anything has changed, rather than assuming nothing is available.
Is it worth waiting on the SVR for my credit to improve?
It depends on the cost of waiting against the benefit. Negative entries carry less weight as they age and drop off after 6 years, so if you are close to that point it can be worth reviewing your budget and waiting. Our credit file date calculator shows likely dates.
Can I remortgage to a new lender straight from the SVR?
Often, yes, since there is usually no early repayment charge to work around. You will still need to meet a new lender’s credit and affordability checks, which is where recent adverse credit can narrow the field.