Standard variable rate (SVR) mortgages

A standard variable rate, or SVR, is the interest rate your mortgage moves onto when an introductory deal, such as a fixed, tracker or discount rate, comes to an end and you have not arranged a new one¹. Every lender has one, and each lender sets its own SVR at whatever level it wants². The average SVR was 6.58% in August 2026, down 0.31 percentage points on a year earlier³, and SVRs tend to be significantly higher than the rates on other types of mortgage¹.

Because an SVR is variable, your monthly payments can go up or down². The lender can change the rate by any amount and at any time⁴, though it must write to affected customers when it does⁵. The trade-off for that uncertainty is flexibility: SVR mortgages tend not to have an early repayment charge, so you can usually overpay, pay the mortgage off in full or move to another lender without a penalty¹.

What a standard variable rate is and when you move onto it

A standard variable rate mortgage is what you are transferred onto when a fixed, tracker or discount deal comes to an end¹. It is the interest rate charged by your bank or building society once that initial period finishes⁸, and lenders describe it as their default rate: the rate you could pay if you do not switch to a new deal when your existing product ends⁹. Introductory deals typically last two to five years⁴, so the SVR is where many borrowers find themselves a few years into a mortgage.

The move happens automatically. If you are on an introductory fixed, discount or tracker rate, your mortgage will usually move onto the lender's standard variable rate, which is invariably at a higher rate, when the term ends¹⁰. Lloyds Bank puts it plainly for its own fixed rate mortgages: when the fixed rate period ends, you will usually move to the lender's SVR unless you remortgage or switch to a new deal¹¹. Virgin Money describes its SVR as "the interest rate your mortgage moves to once your initial deal period has ended"¹².

An SVR is also known as a reversion rate mortgage, because your mortgage reverts to it¹. The Financial Ombudsman Service, which handles complaints about mortgages, lists variable rate mortgages, where you pay your mortgage provider's SVR, alongside fixed rate mortgages, where you pay the same rate for an agreed number of years before going back to the SVR or, if you choose, remortgaging¹³. Leeds Building Society calls its SVR its base lending rate, charged once the initial fixed or tracker period ends¹⁴.

You are not left guessing when this will happen. Most lenders will contact you before your mortgage term ends, and your lender will usually talk to you about a new deal about 3 to 6 months before the end of the one you have now². You can choose a new deal with your current provider or switch to another provider before the term ends¹⁵. If you do not choose, you are moved onto the SVR automatically¹⁵. The wider guide to what to do when your fixed rate ends covers that decision in detail.

How lenders set their SVR and why it is not the base rate

Each lender has its own SVR that it can set at whatever level it wants, and this rate is usually much higher than the rate you would get on a new fixed, tracker or discount deal¹⁶. Lenders set their own rates, so they are not all the same². The base rate set by the Bank of England is only one of several factors a lender takes into account when setting its SVR, alongside its cost of borrowing, risk management and internal targets¹.

The link to the base rate is influence, not obligation. SVRs are not directly linked to the base rate, but they are often affected by it¹⁷, and the rates do not have to follow base rate changes². Santander states it plainly for its own SVR: "It doesn't track the Bank of England base rate, but it may change if the base rate changes"⁷. Principality makes the same point from the lender's side: its SVR is set by the lender and may not change every time the Bank of England Base Rate moves¹⁸. Cambridge Building Society says it sets its own SVR, influenced by a number of factors including the base rate⁶.

Timing and size of any move are also the lender's choice. An SVR can move up or down, usually depending on changes to the Bank of England base rate, but not always by the same amount or at the same time¹⁹. Often, if the base rate goes up, lenders will increase their SVR in the days and weeks after¹. Hodge, a specialist lender, lists the sort of events that can change its standard variable rate: changes in the Bank of England base rate, its own funding or administration costs, economic effects and the impact of new laws or regulations²⁰.

The practical consequence is that you cannot predict your payments from base rate news alone. A base rate cut may not reach your SVR at all, or may arrive late or in part. A base rate rise may be passed on in full, or more. If your budget depends on the SVR, the written notice your lender must give of a rate change, covered below, is where you find out what is actually happening to your payment.

SVR or a new deal: how the costs compare

The core comparison is simple to state: the SVR is usually higher than your previous rate²¹, and the interest rates are often higher for SVRs than for other types of mortgage². Which? reported in 2018, in its response to the Financial Conduct Authority's mortgage market study, that the difference between standard variable rates and the cheapest deals for new customers had grown steadily to 2.71%²². On a large balance, a gap of that size between the SVR and a new deal is a substantial annual cost.

That gap is why lenders and advisers describe reverting to the SVR as something to avoid where possible. NatWest warns that if you do not get a new deal when your existing one ends, you will likely move onto a Standard Variable Rate, which may turn out to be more expensive²³. RBS tells its customers the same: you will usually pay more, as the SVR is often higher than other available rates²⁴. Which? describes the SVR you revert to at the end of a fixed period as usually much more expensive than remortgaging¹⁶.

The options for moving off an SVR are the same as at any other remortgage point:

• Product transfer: a new deal with your current lender, which can be simpler because there is no new mortgage to set up. Which? has looked at whether to consider a product transfer for your next mortgage²⁵.
• Remortgage to a new lender: potentially a wider choice of deals, with the usual mortgage fees and charges and a new application. The guide to remortgaging covers the process.
• Stay put for now: remaining on the SVR while you decide, which costs more in interest but carries no early repayment charge and no product fee⁷.

One group has particular difficulty acting on this comparison. Which? has described mortgage prisoners, borrowers who often end up paying a high SVR when their fixed rate period ends, usually after two to 10 years, and who cannot switch because they do not meet current affordability rules or their lender has closed to new business²⁶. If that is your situation, the page on mortgage prisoners and modified affordability explains the help that exists.

No early repayment charges: overpaying and leaving an SVR

The flexibility of an SVR is its one clear advantage. SVR mortgages tend not to have an early repayment charge, providing the flexibility to pay off your mortgage quicker or move to a different deal whenever you like¹. Hodge tells borrowers coming to the end of a deal that they will not have early repayment charges and can overpay or redeem without penalty²⁷, and Accord Mortgages says the same to its SVR customers: you can pay your mortgage off early without any early repayment charges²⁸.

An early repayment charge will not usually be charged once you have finished the initial deal period and moved onto your lender's standard variable rate²⁹. Bank of Ireland UK puts it in the same terms: there is usually no charge to pay off your mortgage early or make lump sum payments when you are on an SVR⁵. Principality adds that if you are on its SVR you can usually switch to a new lender without paying an early repayment charge¹⁸, and RBS says you can usually pay off your mortgage early or overpay without a fee²⁴.

What this means in practice:

• Overpayments: lump sums or higher monthly payments usually reduce the balance without penalty⁵. The guide to overpaying your mortgage covers how payments are recalculated.
• Redemption: clearing the mortgage in full, for example after selling a home or receiving an inheritance, carries no early repayment charge²⁷.
• Switching away: moving the mortgage to another lender does not trigger a charge from your current one¹⁸.
• Porting: if you move home, the guide to porting a mortgage explains when you can take a deal with you and when the SVR applies instead.

The contrast with introductory deals is worth holding in mind. Fixed, tracker and discount deals typically carry an early repayment charge during the initial period, which is the price of the cheaper rate. On the SVR you pay a higher rate but keep full freedom to leave. The dedicated page on early repayment charges explains how these charges are worked out and when they apply.

Caps, collars and written notice of rate changes

Because a lender can raise or lower its SVR by any amount and at any time⁴, the protections that matter are the ones that limit how low the rate can fall and that force the lender to tell you what it is doing. Some lenders have an SVR ceiling, guaranteeing that the SVR will not rise a certain percentage above the Bank of England's base rate¹. Others may have a collar, meaning the interest rate cannot fall below a certain percentage¹. Neither is universal: they are features of particular mortgages, so your own mortgage offer and terms are the place to check.

Written notice is a firm rule. When a lender changes its SVR, it must write to all affected customers to let them know⁵. Cambridge Building Society describes how it works in practice: if it changes its SVR and all or part of your mortgage is on a variable or discounted rate, it will write to you before your next payment is due, with the new rate and the new monthly payment⁶. The Consumer Credit Act sets out what that notice must contain: the variation in the rate of interest, the amount of any payments to be made after the variation, and any change in the number or frequency of payments³⁰.

There is a further protection in the rules lenders must follow when they show you the cost of a mortgage. Under the FCA's mortgage conduct of business rules, where a varied rate cannot be ascertained at the date of the agreement, it must be assumed that the rate will be the same as the initial standard variable rate³¹. This affects how the long-run cost of a deal is illustrated, and the page on how the APRC is worked out explains what that figure includes.

If a rate change letter arrives and the new payment looks wrong, or you believe the rate has been applied incorrectly, you can complain to the lender and then to the Financial Ombudsman Service, which can look at complaints about the interest rates applied to mortgages¹³. The page on complaining to the Financial Ombudsman about your mortgage sets out the steps.

When staying on the SVR can make sense

Staying on the SVR can give you more flexibility, but may be more expensive than a fixed or tracker deal⁴. That trade-off is the whole decision, and there are circumstances where the flexibility side wins. Principality suggests an SVR can be a short-term option if you want flexibility with your mortgage: when coming to the end of a term, or when circumstances are changing, such as a change to household income or moving home without porting a deal or paying an early repayment charge¹⁵.

Situations where the SVR's freedom can matter include:

• A move is imminent: selling a home or buying another usually means paying off the old mortgage, and doing that from an SVR carries no early repayment charge¹.
• A lump sum is expected: an inheritance, bonus or sale proceeds can go straight into the mortgage without waiting for a deal to end⁵.
• Circumstances are unsettled: a change to household income can make committing to a new fixed period less attractive, and the SVR keeps options open¹⁵.
• A small remaining balance: some lenders state that if you have less than £10,000 left on your mortgage, you may have to stay on the SVR, because new deals are not offered on balances that small. RBS is one: it tells borrowers to contact it to check²⁴.

The cost of that flexibility is the higher rate, and it is not capped by anything except any ceiling or collar in your own mortgage terms¹. A borrower who stays on an SVR for years, rather than months, pays the higher rate throughout, which is why the general guidance is to treat the SVR as a waiting room rather than a destination¹⁶. The pages on fixed rate mortgages, tracker mortgages and discounted variable rate deals set out the alternatives, and mortgage advice: brokers, advisers and applying direct explains where to get help choosing between them.

What can go wrong if payments rise

An SVR is a variable rate, and variable rate interest may change during the agreement: if the rate is variable, your repayments could go up or down³². The Building Societies Association describes variable rate mortgages as ones where payments can move up or down depending on changes to the rate of interest being charged by the lender³³. Because the lender can change the rate by any amount at any time⁴, a rise can arrive that is larger than any base rate move behind it.

The first protection is notice: the letter setting out the new rate and the new monthly payment must arrive before the payment at that rate is due⁶. From there, the practical steps are to check the options, a new deal with the current lender or a remortgage elsewhere¹⁵, and to act early rather than waiting for the payment to become unaffordable. first direct warns that if you do not arrange another deal, you may be moved onto an SVR, which could see your monthly payments rise³⁴.

If a new deal cannot be arranged, contacting the lender early about the payment matters, because missing mortgage payments has serious consequences. If you are unable to keep up repayments on your mortgage, your home could be repossessed by your lender¹. The page on mortgage arrears explains what lenders must do before that point, and what a lender must do before going to court sets out the rules that protect borrowers in England and Wales, with separate guides for Scotland and Northern Ireland.

Free, impartial help is available. StepChange, a debt advice charity, publishes guidance on what to do when a mortgage term ends², and Citizens Advice explains how variable rate interest works and what it means for repayments³². The Mortgage Charter sets out further support lenders have signed up to, including options such as temporarily changing the mortgage term, and the guide to mortgage terms and extending your mortgage term covers one of the main ways borrowers reduce a monthly payment.