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Standard variable rate
Find out what to expect if your mortgage moves to a standard variable rate (SVR). Whether you’ve just moved to an SVR or your mortgage deal ends soon, learn what it means for you.
What is a standard variable rate?
A standard variable rate is an interest rate set by your mortgage lender. You may be charged this rate after an initial mortgage deal. For example, if your 5-year fixed rate deal ends and you haven’t taken out a new one, you would move to a standard variable rate.
This typically happens if your deal was on a fixed or tracker rate mortgage.
Each lender sets their own SVRs and can change them at any time.
You can choose to switch to a new deal or remortgage with a different lender if you don’t want to move to a standard variable rate.
Moving on to a standard variable rate?
If your current mortgage deal is coming to an end and you haven’t yet switched or remortgaged, you’ll likely move to an SVR.
What to expect
If you move to an SVR, your lender should have given you notice. They should also let you know what your rate will be and if your monthly payment will be increasing.
An SVR can be reduced for any reason, but it should only be increased if there’s a reason.
At Lloyds, we will only increase our Lender variable rates if there’s a change to our cost of lending or any specific reasons in your terms & conditions.
If the standard variable rate changes, then your monthly repayments could change as well. Make sure you have budgeted for potential increases to your repayments.
What you can do
If your mortgage deal is ending, you can stick with your lender by getting a new deal or move to an SVR. Or you can think about remortgaging with another lender. Keep in mind that standard variable rates are usually higher than other mortgage rates, so it may be cheaper to switch or remortgage.
Use a mortgage interest rate calculator to see what your repayments could be if your rate changes.
Already have a Lloyds mortgage?
You could lose your home if you don’t keep up your mortgage repayments
Frequently asked questions
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Whether it’s best to stay on an SVR or switch will depend on your circumstances and the mortgage deals available. SVRs are usually higher than the interest rate on fixed deals. However, early repayment charges don’t normally apply on SVRs, which can be handy if you want to overpay. Compare the SVR against fixed and tracker rates, to see which one could be best for you.
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Yes, an SVR can go down. Your lender can reduce the rate for any reason. Whenever there is a change with your rate and payment, your lender will notify you about those changes before they happen.
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SVRs have no end date so can run until the end of your mortgage term. There are usually no early repayment charges, so you can choose a new deal when the time’s right for you.
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