[divider]\r\n<h2 id="what">What is a standard variable rate?<\/h2>\r\nStandard variable rate simply refers to the interest rate on a mortgage that is not currently locked into a \u2018fixed\u2019 rate or tracker, usually because the initial deal has elapsed. Each lender sets its own SVR that will kick in once a customer\u2019s initial fixed rate or discounted deal has come to an end, and as the name suggests, these rates can fluctuate.\r\n\r\nIn the UK, SVR mortgage rates move broadly in-line with the Bank of England base rate, but the actual rate you\u2019ll get is ultimately at the lender\u2019s discretion, and some lenders will have higher SVRs than others.\r\n\r\nSome lenders (for example, those who want to prioritise new business) may offer great introductory rates that revert to less compelling and much more expensive SVRs. So even on a fixed-rate mortgage, it\u2019s important to know where you stand so you can plan your exit if you want a cheaper deal at the end of the term.\r\n[divider]\r\n<h2 id="FAQ">Standard variable rate mortgage FAQ<\/h2>\r\nIn the following section, we\u2019ve rounded up the most popular questions about SVRs that we regularly receive from customers. Please don\u2019t hesitate to <a href="https:\/\/enquiries.onlinemortgageadvisor.co.uk\/match-me-with-a-specialist-broker">send us a message<\/a> if you have a related question that isn\u2019t covered here.\r\n<h3 id="stay">Should I stay on a standard variable rate mortgage?<\/h3>\r\nIn many cases, staying on your lender\u2019s SVR is the more expensive option. See the example below for a typical scenario:\r\n\r\n<i>Let\u2019s say you were to take out a \u00a3100,000 mortgage with a 2-year fixed interest rate of 1.39%. For the first 2 years of this mortgage, you\u2019d pay the same rate of 1.39% on each payment, amounting to \u00a3395 per month. But after the 2 years has expired, your lender\u2019s rate reverts to 4.5%, meaning that if you stayed on the SVR you\u2019d need to pay \u00a3556 a month, costing you an extra \u00a31,932 a year.<\/i>\r\n\r\nHowever, in some cases the SVR can look like a good option. This will depend on market conditions both current and at the time of taking out the mortgage, as well as your lenders\u2019 SVR in comparison with its competitors and your personal circumstances. Rates have been low for many years, so some simply stay on an SVR mortgage as they think that switching would be a hassle.\r\n\r\nFor example, if you took out a fixed-rate mortgage when interest rates were higher than they are now, your repayments would fall once the loan reverts to its SVR. And if you did see a better rate elsewhere, you wouldn\u2019t be charged by your lender if you chose to switch providers: most fixed-rate mortgages have charges in place to stop people switching too often.\r\n\r\nIn this case it would still usually make financial sense to fix or switch to a tracker while rates are low, as you cannot guarantee that your lender\u2019s SVR will stay low. However this may not always be an option if you are planning to sell or move in the near future.\r\n\r\nIf you\u2019re undecided about whether to stay on your lenders SVR, <a href="https:\/\/enquiries.onlinemortgageadvisor.co.uk\/match-me-with-a-specialist-broker">make an enquiry<\/a> and we\u2019ll be happy to put you in touch with an expert for impartial advice.\r\n<h3 id="vs">Tracker mortgage vs SVR: what\u2019s the difference?<\/h3>\r\nTrackers are another type of variable rate mortgage, but there are some key differences between the two product types. The interest rate on a tracker mortgage is tied to the Bank of England base rate and must rise and fall in step with it, so lenders cannot adjust the rate in line with their own policies as they can do with their SVR.\r\n\r\nTracker mortgages are usually set up for a fixed period and can be a great way to save money on your repayments if you\u2019re prepared to take the risk of a rate rise. Some people choose to overpay on a tracker while rates are low, knowing that they can put those extra funds into their regular payments if they suddenly increase.\r\n<h3 id="discount">What is a discounted SVR mortgage?<\/h3>\r\nOn a discounted SVR mortgage, your interest rate is calculated as the lender\u2019s SVR but with an agreed \u2018discount\u2019 taken off, for a fixed period (usually 3 or 5 years).\r\n\r\nSo, if the lender\u2019s SVR is 4.5% and you take a deal offering a 1% discount for 2 years, during that 2 year period you\u2019ll pay 3.5% <i>unless<\/i> the lender\u2019s SVR changes during this time. If it were to rise to 5% for example, your rate would rise to 4%, and so on.\r\n\r\nAt the end of the agreed term, you would pay the non-discounted SVR, unless you switch to a new deal.\r\n<h3>Can I take out an SVR mortgage?<\/h3>\r\nYes, it is possible to take out a new mortgage and go straight on to a standard variable rate with no initial fixed term, but this is fairly unusual: SVRs can be unpredictable, because while they are influenced by the Bank of England base rate, they are ultimately set at the discretion of the lender. So most borrowers prefer to lock in to a rate they are comfortable with.\r\n\r\nHowever, by taking out a mortgage on the standard variable rate initially you do have more flexibility: there\u2019s usually no restriction on moving on to another product or provider, so this could be an option if you think you may want to refinance significantly in less than two years, which is the usual minimum fixed term.\r\n\r\nNot all lenders offer this, so we suggest you <a href="https:\/\/enquiries.onlinemortgageadvisor.co.uk\/match-me-with-a-specialist-broker">speak to an expert<\/a> if you\u2019re thinking of arranging a new mortgage on an SVR.\r\n<h3 id="rates">What are typical UK standard variable mortgage rates?<\/h3>\r\nCustomers often ask us, \u201cWhat is the average standard variable mortgage rate?\u201d. The \u2018typical\u2019 SVR is always an estimate because by definition variable rates can change, and they also differ from one lender to the next. But on average, standard variable mortgage rates in the UK are somewhere around 4.9% (at the time of writing).\r\n\r\nThis compares unfavourably with the cheapest rates available on the market, some of which are as low as 1.29%. But,\u00a0 on average, fixed rates are around 2.52%.\r\n\r\nDon\u2019t forget that many other factors influence fixed rates, including the number of years you\u2019re fixing it for, the health of your <a href="https:\/\/www.onlinemortgageadvisor.co.uk\/bad-credit-mortgages\/how-to-get-a-mortgage-with-bad-credit\/">credit history<\/a>, <a href="https:\/\/www.onlinemortgageadvisor.co.uk\/deposits\/">deposit size<\/a>, property type, property value and more.\r\n<h3 id="mortgagesvr">How can I find out my mortgage\u2019s standard variable rate?<\/h3>\r\nIf you are currently on a fixed rate with your provider and don\u2019t know what it will revert to once the initial period is over, getting hold of this information should be easy.\r\n\r\nIf you still have the paperwork from when you arranged the mortgage, the lender\u2019s current SVR should be clearly visible on it, as well as on your annual statements. But in the absence of these documents, your lender will be able to provide you with this information.\r\n<h3 id="help">Help! I\u2019m stuck on my lender\u2019s SVR<\/h3>\r\nCustomers often ask us about the possibility of getting \u2018stuck\u2019 on a lender\u2019s SVR with no hope of remortgaging to fix at a lower rate. Fortunately, this scenario is relatively unlikely because tightening of regulations in recent years has meant that mortgage companies are more cautious, and take extra steps to ensure customers can repay their loans.\r\n\r\nIn practice, this means that if you\u2019ve passed initial checks and been granted a mortgage in recent years, you should still be accepted for a new one, either with a different provider or your current lender, on a fixed rate or tracker.\r\n\r\nBut what if your situation has changed radically or if you took out a mortgage before these regulations came into play? In the unlikely event that your current provider will not consider offering you a fixed-rate loan, you may be what has become known as a \u2018mortgage prisoner\u2019.\r\n<h3 id="prisoner">What is a \u2018mortgage prisoner\u2019?<\/h3>\r\nSome homeowners, especially those who took out mortgages more than a decade ago, are now struggling to refinance and fix at a better rate than their lender\u2019s SVR because they simply don\u2019t meet the stricter eligibility criteria set by today\u2019s lenders, even though they are already successfully repaying a mortgage. So what can you do if you find yourself in this unenviable position?\r\n\r\nFortunately, every lender has different eligibility criteria and there are lenders out there who will consider applications from new customers who may have been overlooked by other providers due to issues such as adverse credit, employment status or age.\r\n\r\nOur advisors can help you to identify sympathetic lenders that are more likely to accept you as a customer, freeing you from a potentially crippling SVR. <a href="https:\/\/enquiries.onlinemortgageadvisor.co.uk\/match-me-with-a-specialist-broker">Make an enquiry<\/a> to get started.\r\n[divider]\r\n<h2 id="enquire">Speak to a mortgage SVR specialist<\/h2>\r\nIf you have any questions relating to standard variable mortgage rates\u2060\u2014whether you\u2019re trying to get out of one or you\u2019re looking to take out a mortgage on an SVR\u2060\u2014the specialist advisors we work with can help you find the right mortgage for you.\r\n\r\nWith access to the whole market and plenty of experience in successfully arranging mortgages for customers in all kinds of circumstances, they are ideally placed to get you a better deal. Call us on 0808 189 2301 or <a href="https:\/\/enquiries.onlinemortgageadvisor.co.uk\/match-me-with-a-specialist-broker">make an enquiry<\/a>\u00a0 and we\u2019ll be in touch soon.