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Learn about the standard variable rate (SVR) and what happens when your existing mortgage deal comes to an end.
A lender’s standard variable rate is what you are automatically placed on when a fixed-rate, tracker mortgage or discount mortgage ends.
An SVR varies from lender to lender.
Lenders will set their own standard variable rates.
An SVR can be influenced by the Bank of England Base Rate much like tracker mortgages. However, the standard variable rate has no obligation to change in line with increases or decreases in the base rate.
Standard variable rates are generally more influenced by the lender’s cost of borrowing. It’s important to note that standard variable rates can change at any time.
First things first, your lender’s current standard variable rate is most likely different from the percentage stated in the original mortgage offer. The change seen in the standard variable rate will be reflective of the current rate conditions.
We have looked at the current standard variable rates of lenders to give you an understanding of where the standard variable rates with your lender are currently at. All data is correct as of Thursday 19th January 2023.wpDataTable with provided ID not found!
From this data, we can see that the average standard variable rate for residential mortgages is 6.91%. The average standard variable rate for buy-to-let mortgages is 7.25%.
One of the biggest benefits of staying on your lender’s SVR is that there are often no early repayment charges. If you are looking to sell your property soon, an SVR could give you the flexibility you need.
If you prefer to have financial security and repay the same amount each month you should consider remortgaging to a fixed-rate product.
Get in touch with Visionary Finance if you would like to discuss your mortgage options. Our team of experienced mortgage advisers will work with you to source an ideal mortgage solution. Mortgages are not one size fits all. For the best mortgage advice, contact us.