A standard variable rate (SVR) mortgage is a type of mortgage where the interest you pay is determined by your lender’s ‘standard’ or default interest rate. A SVR mortgage is usually what you will be transferred to when you come to the end of a fixed rate, tracker or discounted mortgage.
As a borrower on an SVR mortgage you will have no control over your monthly repayments, as your lender can choose to raise or lower their standard variable rate at any time. Standard variable rates will often be influenced by changes to the Bank of England’s base rate, however this isn’t always the case and lenders may choose to alter their rate independently of the base rate.
An SVR mortgage can leave you open to financial uncertainty, as you may not be prepared for a sudden rise in your lender’s SVR. Find out what type of mortgage may be suitable for you by finding a mortgage adviser in your local area.