Standard Variable Interest Rate Mortgage (SVR)

Standard Variable Interest Rate Mortgage (SVR)

Standard variable-rate mortgage a mortgage in which the rate of interest is varied from time to time by the mortgagee (lender) according to market conditions.

As is the case with any kind of interest rate It generally does not remain stable, so the standard variable rate mortgage is specifically designed to bear this in mind, in respect to this mortgage deal the base rate is set by the Bank of England and so when the Bank of England changes the base rate the standard variable rate will change also.

When a mortgage term (A non standard variable rate) ends (which usually agreed by the lender and a borrower) usually for a period of around five years the mortgage is changed back (defaulted) to the standard variable-rate.

If you have a standard variable rate mortgage you can normally switch lenders without incurring any kind of penalty than if you started with a mortgage that wasn't standard variable rate.