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Save money by getting off of a Standard Variable Rate mortgage

What is Standard Variable Rate?

Standard Variable Rate, sometimes called a ‘revert rate’ or ‘reversion rate’, is the interest rate that your mortgage lender moves your mortgage to when your introductory offer ends. For example, a borrower who took a two-year fixed rate will see their mortgage revert to the standard rate at the end of the product period if they do not take alternate action. The lender will keep the borrower on this rate unless action is taken.

Why is being on a Standard Variable Rate a problem?

In short, cost.

Mortgage lenders like borrowers to be on this rate as it is very profitable for them because they are in control of the rate.

Our analysis of 63 lenders in today’s market shows that a borrower with a mortgage of just £100,000 could save around £200 per month simply by switching from their lender’s standard variable rate to a more competitive mortgage rate.

Save an average of £187 per month against the Standard Variable Rate on your Residential Mortgage

Our table shows Lenders’ current standard variable rates and the potential monthly savings available when swapping rates for a borrower with a £100,000 mortgage.

LenderStandard Variable RateSaving
Accord6.99%£166
Aldermore Bank8.48%£290
Bank of Ireland7.09%£174
Barclays7.49%£208
Bluestone7.74%£228
Buckinghamshire BS7.74%£228
Cambridge BS6.79%£149
Chorley BS7.49%£208
Clydesdale Bank7.74%£228
Coventry BS6.34%£112
Darlington6.74%£145
Dudley BS7.29%£191
Family BS6.54%£128
Furness BS7.49%£208
Halifax7.49%£208
Hinckley & Rugby BS8.69%£308
Hodge7.10%£175
HSBC6.79%£149
Kensington Mortgages7.75%£229
Kent Reliance7.49%£208
Leeds BS6.99%£166
Leek United6.94%£162
Mansfield7.49%£208
Melton Mowbray7.24%£187
Metro Bank7.00%£167
Monmouthshire BS6.99%£166
Nat West6.74%£145
Nationwide BS7.49%£208
Newbury BS6.00%£83
Nottingham BS6.50%£125
Penrith BS6.25%£104
Pepper Money7.95%£246
Platform6.87%£156
Precise Mortgages7.75%£229
Principality6.45%£121
Santander7.25%£188
Scottish Widows Bank7.49%£208
Skipton BS6.29%£108
Suffolk BS7.44%£203
The Mortgage Lender8.00%£250
Tipton7.29%£191
TSB7.49%£208
Vida Homeloans8.19%£266

The above figures are intended as a guide only and are based on the current SVR against a new rate of 5.00%. Speak to our team for tailored figures for your own situation.

Save an average of £220 per month against the Standard Variable Rate on your Residential Mortgage

Our table shows Lenders’ current standard variable rates for buy-to-let mortgages and the potential monthly savings available when swapping rate for a landlord with a £100,000 mortgage

LenderStandard variable RateSaving
Accord6.99%£166
Aldermore Bank8.48%£290
Bank of Ireland7.09%£174
Barclays8.49%£291
Bluestone8.74%£312
BM Solutions8.34%£278
Cambridge BS7.79%£233
Chorley BS7.49 %£208
Clydesdale Bank 8.24%£270
Family BS7.29%£191
Fleet7.00%£167
Foundation Home Loans8.99%£333
Furness BS7.49%£208
Gatehouse Bank7.75%£229
Godiva Mortgages6.34%£112
Hampshire Trust9.00%£333
HSBC6.35%£113
Kensington Mortgages7.75%£229
Kent Reliance9.58%£382
Keystone8.99%£333
Leeds BS7.29%£191
Leek United6.94%£162
Mansfield7.49%£208
Melton Mowbray7.24%£187
Metro Bank7.50%£208
Monmouthshire BS6.99%£166
Nat West6.74%£145
Newbury BS6.00%£83
Paragon Mortgages7.10%£175
Platform6.87%£156
Precise Mortgages7.75%£229
Principality6.45%£121
Saffron BS7.49%£208
Santander7.25%£188
Skipton BS6.29%£108
Suffolk BS7.44%£203
The Mortgage Lender8.96%£330
The Mortgage Works8.49%£291
TSB8.34%£278
Vida Homeloans8.39%£283
Virgin Money7.94%£245
West One8.99%£333
Zephyr8.90%£325

The above figures are intended as a guide only and are based on the current SVR against a new rate of 5.00%. Speak to our team for tailored figures for your own situation.

Does my lender offer alternative rates?

Your mortgage lender in most cases will contact you before your current special rate ends to offer you alternatives to the standard variable rate. However, since they will only be offering you from their limited range of rates you cannot be sure that you can get the best deal available on the market from your existing lender. It is recommended, therefore, that you consider the whole of the market when reviewing your mortgage.

What if I don’t take up the offer of a new rate from our existing lender?

If you do not arrange a new rate with your existing lender you will drop onto the standard variable rate. We are all busy people, and often, even with the best intentions, we may forget to make the necessary arrangements to keep our mortgage rate competitive.

Your mortgage lender will generally contact you when your current rate ends to offer alternatives, but the lender is unlikely to contact you again once you have gone on the standard variable rate.

This does not mean that you have missed your chance to move to a more favourable rate as there are no early repayment charges on standard variable rates, this means you can move your mortgage and save money at any time.

Am I on a Standard Variable Rate?

Many borrowers are on standard variable rates. Mortgage industry figures show that every month there is up to £14 Billion of mortgage lending that is coming out of fixed or tracker rates for mortgage borrowers across the country.

If you have been with your mortgage lender for a number of years and do not remember taking any action to move to a new rate you are probably on a standard variable rate.

What are the costs involved in switching mortgage rates?

You can switch to a new rate from a standard variable rate at no cost in a number of ways. Your existing lender may offer a range of rates you can switch to without cost. Other lenders will be keen for your business and will offer ‘fees free’ remortgaging with rates more favourable than your lender can offer in some cases.

Can I raise extra money?

Yes, when you remortgage onto a new rate with a new lender can raise extra cash to pay off debt, build an extension or improve your home, or put money aside for business reasons, school fees, etc. Your existing lender may also offer you extra cash through what is known as a further advance.

Are there disadvantages to moving from Standard Variable Rate?

There could be for some borrowers.

For example, as standard variable rates do not carry early redemption charges, leaving your mortgage on an SVR could be more suitable if you are expecting to repay the mortgage in full in the short term. This also applies if you intend to pay lump sums off of your mortgage or overpay your mortgage.

You should always speak to a qualified mortgage advisor before you take a new mortgage rate.