Standard Variable Rate Mortgages

Introduction

A Standard Variable Rate (SVR) mortgage gives your lender full control over the interest rate you pay. Unlike tracker mortgages, SVRs aren’t directly tied to the Bank of England (BoE) base rate. Instead, the interest rate is set—and adjusted—at the lender’s discretion.

What does this mean for you?

While changes in the BoE base rate can influence your lender’s decisions, there’s no guarantee your interest rate will move in line with it. Your lender may choose to increase or decrease rates independently of any BoE changes.

Rates for SVR mortgages are often 2% to 5% (or more) above the base rate. However, the lack of fixed rates or special deals means SVRs can sometimes be more—or less—expensive than other mortgage types.

Key features of an SVR mortgage:

• Flexibility: Typically, there are no early repayment charges, so you can pay off your mortgage sooner without extra fees.
• Lower arrangement fees: Compared to fixed-rate or tracker mortgages, SVRs often come with smaller upfront costs.
• Variable payments: Unlike fixed-rate deals, your monthly repayments can change, making budgeting more uncertain.

Is an SVR right for you?

SVR mortgages are often the default option when your initial fixed or tracker deal ends. While they can offer flexibility, the unpredictability of rates means they may not suit everyone.

Looking for advice?

At Maplestone, we’ll help you explore whether an SVR mortgage will help you to achieve your goals — or if switching to a different deal might be more beneficial. Whatever your needs, we’re here to support you every step of the way.

Ready to chat? Get in touch today!