What’s my Standard Variable Rate (SVR)?

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Standard Variable Rate rip-off

The UK’s biggest mortgage lenders are hitting borrowers with an average £3,242 hike in annual interest repayments by dumping them onto their Standard Variable Rate, according to new research.

When an introductory offer on a mortgage ends, borrowers are usually dumped onto their lender’s Standard Variable Rate (SVR). This could be higher or lower than the initial introductory rate – but is typically much higher.

The research from Trussle, an online mortgage broker, compared the average SVRs against the best two-year fixed rate mortgage deals from 76 lenders over a six-month period.

It found that borrowers with Lloyds, Nationwide, Santander, RBS, Barclays, and HSBC – which collectively serve 69% of the market – would see their rate jump by an average of 2.5% when moved from a top two-year deal onto the SVR.

Bank	SVR	Best two-year fixed rate
HSBC	3.73%	1.08%
Nationwide	3.75%	1.23%
Santander UK	4.50%	1.31%
Royal Bank of Scotland	3.82%	1.32%
Barclays Bank	3.71%	1.32%
Lloyds Bank	3.83%	1.79%

Source: Trussle

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What can prompt a change in SVR?

Lenders are generally free to adjust their SVRs as they wish.

One factor that may prompt a move in SVR is a change in a market rate like the Bank of England Base Rate, especially as some SVRs are linked directly to this.

In August 2016, following the EU referendum, the rate moved for the first time in seven years. The Bank of England voted to cut Base Rate which had been at 0.5% since March 2009, to 0.25%.

For homeowners with a fixed rate mortgage there was no difference to their repayments as these are set for the term of the deal, while those with a variable rate mortgage that tracks the Bank of England Base Rate saw their bill drop 0.25% thanks to the change. But the picture was less clear for those on their lender's SVR.

The move to cut Base Rate prompted a few lenders to announce changes to their SVRs, but many others have remained quiet and chosen not to pass on the saving to borrowers.

Is your mortgage rate about to jump? Look at remortgage deals with loveMONEY

How to avoid your lender’s SVR

Chances are the rate you are reverted to is higher than what you were previously paying.

If you want to avoid paying more you should remortgage onto a new deal but according to Trussle’s research while most of the UK’s 11.1 million mortgage borrowers do successfully remortgage before being moved to a SVR, a vast number fail to do so.

Of the three million households currently on a lender’s SVR, around one million are ‘mortgage prisoners’, unable to switch because of stricter borrowing rules, but around two million people on SVRs could switch immediately.

This group constitutes 18% of the mortgage borrowing population, and they are collectively overpaying lenders by £9.8 billion in interest payments every year.

The main reason so many people are languishing on a more expensive deal is apparently down to a lack of awareness. Trussle found two thirds (65%) of UK mortgage holders don’t realise that a lender’s SVR is usually worse than a fixed rate and nearly half don’t know when their fixed period comes to an end.

Another reason so many don’t switch is stress of applying for a mortgage. Two in five (41%) in the Trussle survey said they had a negative first mortgage experience which put them off going through the process again.

We’ve listed the current SVRs of banks and building societies so that you can quickly check the rate you might be about to revert to – or are already on – and compare this to the top mortgage rates on offer right now. Chances are there will be a significant difference.

To switch to a better deal, take a look at our guide: How to remortgage for an idea of the costs and how to go about it.

Current SVRs at the UK’s banks

Here is a round-up of the current SVRs in operation at the UK’s major banks for residential and buy-to-let mortgages.

The list is in alphabetical order.

Bank	Current SVR on residential mortgages	Current SVR on buy-to-let mortgages	Notes
Aldermore	4.73%	4.73%	Aldermore Managed Rate – this is the reversion rate set by Aldermore.
Barclays (Woolwich)	3.74%	4.74%	Both SVRs linked to Barclays Bank Base Rate (BBBR) which typically follows the Bank of England Base Rate, but is not guaranteed to do so.
Clydesdale Bank	4.70%	5.10%
Danske Bank	4.75%	n/a
First Direct	3.69%	n/a
Halifax/Bank of Scotland	3.99%	4.84%	Buy-to-let SVR is linked to the Bank of England Base Rate so is likely to fall 0.25% from September 1 2016.
HSBC	3.69%	4.75%
Al Rayan Bank	4.24%	5.24%	Linked to Bank of England Base Rate.
Lloyds Bank	3.74% (HVR) 2.25% (SVMR)	4.59% (BTLVR)	Lloyds Bank has three ‘revert to’ rates. Homeowner Variable Rate (HVR) and Buy to Let Variable Rate (BTLVR) applies to mortgages taken out on or after 1st June 2010. Standard Variable Mortgage Rate (SVMR) applies to mortgages taken out before 1st June 2010.
Metro Bank	3.75%	4.25%
NatWest	3.75%	4.25%
Post Office Money	4.24%	4.49%	The SVR is linked to the Bank of England Base Rate. Post Office mortgages are supplied by the Bank of Ireland.
Reliance Bank	2.75% (SVR) 3.75% (HMVR)	3.75% (HMVR)	HMVR stands for Home Mortgage Variable Rate.
Santander	4.49%	4.49%	These SVRs also applies to Alliance & Leicester customers.
Scottish Widows Bank	3.74%	n/a
Tesco Bank	3.89%	n/a
Co-operative Bank	4.49%	n/a	SVR applies to Britannia mortgages.
Royal Bank of Scotland	3.75%	3.75%
TSB	3.74% (HVR) 2.25% (SVMR)	4.59% (BTLVR)	TSB has three ‘revert to’ rates. Homeowner Variable Rate (HVR) and Buy to Let Variable Rate (BTLVR) applies to mortgages taken out on or after 1st June 2010. Standard Variable Mortgage Rate (SVMR) applies to mortgages taken out before 1st June 2010. The rate is linked to the Bank of England Base Rate. These rates apply to Cheltenham & Gloucester mortgages
Ulster Bank	3.75%	4.30%
Virgin Money	4.54% (SVR) 4.29% (Virgin Money Loyalty Rate)	4.74%	The Virgin Money Loyalty Rate is a discount of 0.25% from its Standard Variable Rate. It’s available to existing residential Virgin Money mortgage customer that have held their mortgage for seven years, not currently benefiting from a deal and not currently within an Early Repayment Charge period.
Yorkshire Bank	4.70%	5.10%

Is your mortgage rate about to jump? Look at remortgage deals with loveMONEY

Current SVRs at the UK’s building societies

Here is a round-up of the current SVRs in operation at the UK’s building societies for residential and buy-to-let mortgages.

The list is in alphabetical order.

Building society	Current SVR on residential mortgages	Current SVR on buy-to-let mortgages	Notes
Bath Building Society	5.04%	5.04%
Beverley Building Society	4.75%	n/a
Buckinghamshire Building Society	4.99%	5.74%
Cambridge Building Society	4.74%	5.39%
Chelsea Building Society	4.74%	n/a
Chorley & District Building Society	5.24%	5.24%
Coventry Building Society	4.49% (SVR) 4.24% (Privilege Mortgage Rate)	4.49%	Privilege Mortgage Rate is a special rate that applies to residential borrowers that have held a Coventry product for the last five years.
Cumberland Building Society	4.24%	5.40%
Darlington Building Society	5.70%	5.70%
Dudley Building Society	4.99%	5.49%
Earl Shilton Building Society	4.99%	n/a
Ecology Building Society	4.65%	4.90%
Furness Building Society	5.29% (MVR) 5.19% (SVR)	5.29% (MVR) 5.19% (SVR)	Standard Variable Rate applied to mortgages taken out before 01/05/2014. Mortgage Variable Rate applies to mortgages taken out after 01/05/2014.
Hanley Economic Building Society	4.94%	4.94%
Harpenden Building Society	4.19%	4.19%
Hinckley and Rugby Building Society	5.64%	5.64%
Holmesdale Building Society	4.74%	5.99%
Ipswich Building Society	5.24%	5.24%
Kent Reliance Building Society	5.83%	6.33%
Leeds Building Society	5.44%	4.74%
Leek United Building Society	5.19%	5.19%
Loughborough Building Society	4.84%	4.84%
Manchester Building Society	5.49%	5.49%
Mansfield Building Society	5.34%	5.34%
Market Harborough Building Society	5.49%	5.49%
Marsden Building Society	5.70%	n/a
Melton Mowbray Building Society	4.99%	4.99%
Monmouthshire Building Society	4.74%	4.74%
National Counties Building Society	4.44%	5.19%
Nationwide Building Society	3.74% (SMR) 2.25% (BMR)	4.49%	Nationwide has two ‘revert to’ rates for residential mortgages. The Base Mortgage Rate (BMR) applies to mortgages taken out prior to April 2009. The Standard Mortgage Rate (SMR) applies to mortgages taken out after April 2009. Buy to Let mortgages are provided through Nationwide’s specialist Lender The Mortgage Works.
Newbury Building Society	4.20%	4.20%
Newcastle Building Society	5.99%	n/a
Nottingham Building Society	5.49% (VMR)	6.29% (BTL VMR)
Norwich & Peterborough Building Society	4.74%	n/a
Penrith Building Society	4.15%	4.15%
Principality Building Society	4.74%	4.74%
Progressive Building Society	4.50%	n/a
Saffron Building Society	5.39%	5.39%
Scottish Building Society	5.04%	5.04%
Skipton Building Society	4.74%% (MVR) 4.70% (BRT) 4.70% (SVR)	4.94% (MVR) 4.70% (BRT) 4.70% (SVR)	Skipton has three types of ‘revert to’ rates. Skipton’s Mortgage Variable Rate (MVR) is the most current and applies to mortgages taken out on or after 14th November 2012. This is set by the Society. The Base Rate Tracker (BRT) applies to mortgages taken out on or after 30th December 2009 but before 14th November 2012. This tracks the Bank of England Base Rate plus 4.45%. While the Standard Variable Rate (SVR) relates to mortgages taken out before 30th December 2009. N.B. The guarantee of the rate not rising more than 3% above the Bank of England Base Rate (the SVR Ceiling) has been suspended because of exceptional circumstances (Base Rate at record low) but may be reinstated once this changes. For more see here.
Stafford Railway Building Society	2.95%	4.5%
Swansea Building Society	4.65%	5%
Teachers' Building Society	4.74%	5.49%
Tipton and Coseley Building Society	4.74%	n/a
Vernon Building Society	4.70%	4.70%
West Bromwich Building Society	3.99%	n/a
Yorkshire Building Society	4.74%	n/a

Is your mortgage rate about to jump? Look at remortgage deals with loveMONEY

New figures show mortgage borrowers sitting on their lender’s Standard Variable Rate (SVR) are paying thousands of pounds more than they need to. Here’s a guide to what your bank or building society is charging and how to get a better deal.

Sections

Standard Variable Rate rip-off

What can prompt a change in SVR?

How to avoid your lender’s SVR

Current SVRs at the UK’s banks

Current SVRs at the UK’s building societies