Understanding Standard Variable Rate Mortgages and How to Save Money

If you’re a homeowner or aspiring to become one, it’s essential to familiarise yourself with the various mortgage options available. One such option is the Standard Variable Rate (SVR) mortgage, which is offered by many lenders. In this blog, we’ll break down the concept of an SVR mortgage in simple terms and explain how exploring your options could help you save money on your mortgage payments.

What is a Standard Variable Rate (SVR) mortgage?

A Standard Variable Rate (SVR) mortgage is a type of home loan provided by a bank or lending institution. It’s often the default or standard mortgage product offered to borrowers. SVR mortgages don’t have fixed interest rates like some other types of mortgages, such as fixed-rate or adjustable-rate mortgages.

Instead, the interest rate on an SVR mortgage can change at any time, typically in response to changes in the lender’s internal policies or external economic factors, like the central bank’s base interest rate. This means your monthly mortgage payments can fluctuate, making it harder to predict your housing costs over time.

How does an SVR mortgage work?

Here’s a simplified breakdown of how an SVR mortgage works:

  1. Variable Interest Rate: The interest rate on your SVR mortgage can change periodically, and these changes are determined by your lender. This rate can move up or down, affecting the amount you pay each month.
  2. No Fixed Term: Unlike fixed-rate mortgages that offer a set interest rate for a specific period (e.g., 5 years), SVR mortgages do not have a fixed term. They can theoretically last for the entire duration of your loan.
  3. Payment Flexibility: SVR mortgages often offer more flexibility when it comes to making extra payments or paying off your mortgage early without incurring penalties. However, this can vary between lenders.

How can we help you save money on your SVR mortgage?

If you’re currently on an SVR mortgage, there are several ways we can help you potentially save money:

  1. Mortgage Refinancing: One option is to explore mortgage refinancing. This involves switching from your current SVR mortgage to a new mortgage product with a lower, fixed interest rate. By doing so, you can secure more predictable monthly payments, potentially reducing your housing costs.
  2. Negotiation: Our experts can negotiate with your current lender to see if they can offer you a better rate or terms on your existing SVR mortgage. Lenders often value long-term customer relationships and may be willing to provide improved terms to retain your business.
  3. Financial Assessment: We can assess your financial situation and goals to determine if other mortgage products, such as fixed-rate or tracker mortgages, might be a better fit for your needs. These options could provide more stability and potentially lower interest rates.


Understanding the basics of a Standard Variable Rate (SVR) mortgage is crucial for homeowners or potential buyers. While SVR mortgages offer flexibility, they can also lead to uncertainty in your monthly payments. If you’re currently on an SVR mortgage, exploring your options with our help could lead to potential savings and greater financial stability. Whether through mortgage refinancing, negotiation, or exploring alternative mortgage products, we’re here to assist you in making informed decisions about your home financing. Saving money on your mortgage is not only possible but also a wise financial move that can enhance your long-term financial well-being.

Get in touch today with our Charterhouse Financial team to discuss your position.





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