What is Standard Variable Rate (SVR)?

Standard Variable Rate (SVR) is your lender's default mortgage rate that you move to when your fixed, tracker, or discount deal ends. SVRs are typically 7-8% (2024/25), around 2-3% higher than competitive fixed rates. Most borrowers save significantly by remortgaging before their deal ends to avoid paying SVR.

What is a standard variable rate mortgage?

A standard variable rate (SVR) is your lender's default mortgage rate. You automatically move to SVR when your fixed, tracker, or discount deal ends. SVR is typically 2-3% higher than competitive fixed rates, making it expensive. Most borrowers remortgage to avoid it.

Why is SVR so much higher than fixed rates?

SVR is set by individual lenders and includes their profit margin. Unlike fixed rates that compete for new business, SVR applies to existing customers who haven't switched. Lenders know many won't remortgage, so they charge premium rates. It's essentially paying for inaction.

Should I stay on my lender's SVR?

Usually no. Most borrowers can save thousands by remortgaging to a fixed or tracker rate. The main exceptions are: if you're selling soon (within 6 months), have very little equity, or face barriers to remortgaging. Even then, a product transfer with your existing lender is often better than SVR.

How do I get off SVR?

You have two main options: remortgage to a new lender with a competitive rate, or do a product transfer (switch to a new deal with your existing lender). Product transfers are often simpler with less paperwork. A broker can compare both options for your situation.

Can SVR go up or down?

Yes, your lender can change SVR at any time. It often (but not always) moves with the Bank of England base rate. When base rate rises, SVR usually increases. However, lenders aren't obligated to follow base rate exactly - they set SVR at their discretion.

What is the average SVR in the UK?

As of 2024/25, average SVRs are around 7-8%, compared to fixed rates of 4-5%. This means someone on SVR with a £200,000 mortgage could pay £300-500 more per month than someone on a competitive fixed rate. The exact SVR varies significantly between lenders.

Quick Answer

What is Standard Variable Rate and Why Should I Avoid It?

Last reviewed: December 2025

Reviewed by Jay Sabine – CeMAP Qualified – 29 years experience

SVR is your lender's default (expensive) rate. You move to it when your deal ends. Most people save £200-500/month by remortgaging to avoid it.

Standard Variable Rate (SVR) is the rate your mortgage automatically moves to when your initial deal period ends. It's set by each lender individually and is almost always significantly higher than competitive fixed or tracker rates available in the market. For example, if your 2-year fixed rate at 4% ends and your lender's SVR is 7.5%, a £250,000 mortgage would jump from around £1,315/month to £1,750/month - an increase of over £5,000 per year. This is why most mortgage advisers recommend remortgaging 3-6 months before your deal ends.

Your home may be repossessed if you do not keep up repayments on your mortgage. Your Home Finance Ltd is authorised and regulated by the Financial Conduct Authority (FCA 989177).

Key Points

1SVR is your lender's default rate when deals end
2Typically 2-3% higher than competitive fixed rates
3Can change at any time at lender's discretion
4No early repayment charges on SVR (you can leave anytime)
5Remortgage or product transfer to get a better rate
6Set a reminder 3-6 months before your deal ends

Eligibility Criteria

Anyone whose fixed/tracker/discount deal has ended
Borrowers who haven't remortgaged
People who've forgotten to switch deals
Those who assumed their rate would stay the same
Homeowners who've been with their lender for years

Typical Timeframe

You can leave SVR at any time with no early repayment charges. Remortgaging typically takes 4-8 weeks. Product transfers with your existing lender can be faster. Start looking 3-6 months before your current deal ends to ensure a seamless switch.

Next Steps

1Check your current mortgage rate and when your deal ends
2Compare your lender's SVR to current market rates
3Calculate how much you could save by switching
4Speak to a mortgage broker about your options
5Set a calendar reminder 4 months before any deal ends

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What is Standard Variable Rate and Why Should I Avoid It?

Key Points

Eligibility Criteria

Typical Timeframe

Next Steps

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