What is a standard variable rate?
What a standard variable rate is, today’s typical SVR across lenders, and what staying on it could cost you each month.
Quick answer
A standard variable rate, or SVR, is the rate a lender charges once your fixed, tracker or discount deal ends, unless you move to a new deal. Each lender sets its own standard variable rate and can change it at any time, usually after Bank Rate moves.
SVRs are normally well above the best fixed and tracker deals, which is why most people switch before or soon after their deal ends. Theo’s live figure shows today’s typical SVR across the lenders it checks.
Updated today
Today’s typical SVR
The median standard variable rate across the lenders Theo checks, against an average 2 year fix of .
Theo tracks the standard variable rate of the lenders it checks, and the median across them, every weekday.
Your lender’s SVR, built in
Theo knows each lender’s standard variable rate, so when your deal ends it shows what you would pay on it, and how that compares with today’s deals in your band.
Theo’s read
Loading today’s read.
Every weekday Theo reads swap rates, lender pricing and Bank Rate expectations, the forces behind SVR changes.
Already on the SVR?
Theo shows what switching could save.
What staying on the SVR costs you
Enter your mortgage. Both rates are filled in with today’s figures when Theo’s live data loads. Change them to your lender’s SVR and a deal you have been offered.
Estimates for a repayment mortgage. Fees not included. Not an offer or advice.
How a standard variable rate works
Each lender sets its own standard variable rate. It is not linked to Bank Rate by a fixed margin, as a tracker is, but lenders usually move it when Bank Rate changes, and they can change it at other times too. Your payment changes whenever your lender changes the rate, and your lender tells you the new amount.
You normally move onto your lender’s standard variable rate when a fixed, tracker or discount deal ends, unless you arrange a new deal or your offer sets a different follow on rate.
SVR, fixed and tracker compared
| Standard variable rate | Fixed rate | Tracker | |
|---|---|---|---|
| Who sets it | Your lender | Fixed for the deal | Bank Rate plus a set margin |
| Can it change? | Yes, at any time | No, until the deal ends | Yes, when Bank Rate moves |
| Typical cost | Usually the highest | Depends on swap rates | Often lower at the start |
| Charge to leave | Usually none | Usually, during the deal | Sometimes none |
See fixed or tracker for the choice between the other two.
Is an SVR ever worth staying on?
The main advantage is flexibility. There is normally no early repayment charge, so you can overpay or leave whenever you like. That can suit you for a short spell, for example if you are about to sell or repay the mortgage. For most people, the extra monthly cost soon outweighs it.
How to get off your lender’s SVR
You can usually take a new deal with your lender, known as a product transfer, or move to a new lender. As there is normally no charge to leave, you can switch as soon as a new deal is ready. See how remortgaging works.
If you have been told you cannot switch, for example because of changes to your income, it is worth asking again. Since 2019 the FCA has allowed lenders to use a simpler affordability check for some borrowers who are up to date with payments and not borrowing more. An FCA-authorised adviser can check what applies to you.
Common questions
What is a standard variable rate?
What is the current standard variable rate?
Is it bad to be on a standard variable rate?
Is there an early repayment charge on an SVR?
How do I get off my lender’s standard variable rate?
Keep exploring
Theo App Ltd is not authorised by the Financial Conduct Authority and does not give mortgage advice. This page is information only and is not a recommendation. The typical SVR is the median across the lenders Theo checks, not an offer. Speak to an FCA-authorised mortgage adviser about your own circumstances.
Your home may be repossessed if you do not keep up repayments on your mortgage.