Glossary · UK
What is Standard Variable Rate?
The default mortgage interest rate a lender charges once an introductory fixed or discounted deal ends.
Full Definition
The standard variable rate, or SVR, is the default interest rate a lender applies to a mortgage once any introductory deal, such as a fixed or tracker period, comes to an end. Each lender sets its own SVR, and it can change at the lender's discretion, often influenced by but not directly tied to the Bank of England base rate. Because of this, an SVR is usually higher and less predictable than a deal rate, so borrowers who do nothing when their fixed term ends frequently see their monthly payments rise. Moving onto the SVR does, however, bring flexibility: there are normally no early repayment charges, so you can overpay, remortgage or move lender freely. Many borrowers use this window to remortgage onto a new deal to secure a lower, more stable payment. The exact SVR varies widely between lenders, so any figure should be treated as illustrative and checked directly with your provider. Reviewing your mortgage a few months before your current deal expires helps you avoid lapsing onto the SVR by default and paying more than necessary.