The rate you may move onto after any introductory rate ends

Standard variable rate

What is the standard variable rate?

A standard variable rate, or SVR, is the interest rate that will be charged once an initial deal period on a fixed or tracker rate mortgage comes to an end.

With an SVR mortgage, your mortgage payments could change each month, going up or down depending on the rate.

If you don’t want to stay on a SVR mortgage then you may have the option to switch to a new deal or, if your with another mortgage provider, you can remortgage to us.

Moving to a standard variable rate? What happens when you are on SVR?

There is usually no early repayment charge (ERC), meaning you can pay as much of the mortgage back as you like at any time.

If our SVR goes down, then your rate will drop too, so you’ll pay less.

If the SVR rates go up, then you'll pay more each month and, if you then search for a new deal to tie in a rate, introductory rates may have risen too

Normally, staying at the SVR isn't the cheapest way to pay back your mortgage. You may wish to look at other mortgages if you still have a significant amount to pay off.

You may not be able to move off our SVR if you have less than £10,000 remaining on your mortgage. Please contact us.

Do I have to stay on standard variable rate?

You do not need to stay on a standard variable rate when your current mortgage deal ends. You can switch to a new mortgage deal six months before your current deal expires.

You’ll generally be moved onto your provider’s standard variable rate if your current fixed rate or tracker mortgage deal ends, and you’ve not agreed a new one. You don't have to switch to a new deal though and can remain on a standard variable rate mortgage. Until you take out a new mortgage deal, you’ll remain on a standard variable rate until your mortgage is repaid in full. 

Should I consider switching or remortgaging?

There are some things to consider for a standard variable rate mortgage but you should also consider there are some drawbacks. Please be aware that the standard variable rate can be reviewed at any time. This means your payments could go up or down at any time.

The interest rate of an SVR mortgage can change at any time. This means your monthly payments could go up unexpectedly.

You will likely be paying a higher rate of interest than any other mortgage deals or products.

Standard variable rate mortgage key facts

If you move onto a standard variable rate mortgage, there are a few facts that you might want to think about before switching to a new deal.

You are not locked into a fixed term deal with an SVR so you can switch deal at any time.

There is no early repayment charge on SVR mortgages so you could repay your loan faster.

Consider these facts if you are close to the end of your mortgage term or if you are looking to repay a large amount of your mortgage without an early repayment charge.

Already have a mortgage with us?

Take a look at our mortgage switcher information to see if it would be suitable to move to a new deal.

Need some help or want to talk to a qualified mortgage professional?

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