The Standard Variable Rate (SVR) is a lender's default interest rate. Every mortgage lender sets their own SVR, and it is the rate your mortgage moves to after your initial fixed rate or tracker deal ends. Unlike those products, the SVR can be changed by the lender at any time, for any reason, without needing to follow the Bank of England base rate.
Why the SVR is usually higher
SVRs are typically 1% to 2% higher than the best available fixed or tracker rates. Lenders set their initial deal rates competitively to attract new business, but the SVR is not designed to be competitive. Staying on the SVR after your deal ends is almost always more expensive than remortgaging onto a new deal.
Despite this, a significant number of borrowers remain on their lender's SVR, often because they are unaware their deal has ended or because they assume switching is difficult. In reality, remortgaging is usually straightforward and can save hundreds of pounds per month.
How the SVR affects your affordability
The SVR plays a direct role in the stress test lenders apply when you apply for a mortgage. Most lenders calculate whether you could afford payments at their SVR plus a buffer (typically 1% to 3% on top). A higher SVR means a tougher stress test, which can reduce the maximum amount you are offered. This is one reason why the same borrower can get different maximum amounts from different lenders — their SVRs and stress test buffers vary.
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Check Your AffordabilityLast updated: April 2026
