In most cases, the mortgage will automatically move onto the lender’s Standard Variable Rate unless you arrange a new mortgage product beforehand.
Potentially. If interest rates fall and your lender reduces its SVR, your monthly repayments may decrease. However, there is no guarantee that this will happen.
The Standard Variable Rate is often higher than the rates available on new mortgage deals. Many homeowners choose to remortgage when their initial deal ends to secure a more competitive rate.
They can be. If interest rates rise, your monthly repayments could increase. Borrowers should ensure they can comfortably afford higher payments if rates move upwards.
Many variable rate mortgages do not have early repayment charges, but this varies between lenders. Always check the mortgage terms before switching.
No. A tracker mortgage follows a specific benchmark rate, whereas a Standard Variable Rate mortgage is set by the lender.
Yes. Lenders can change their Standard Variable Rate, although they will normally provide notice before any changes take effect.
SVR stands for Standard Variable Rate. It is the interest rate set by your mortgage lender and can rise or fall over time.