Standard Variable Rate

Date of publish – 16 November 2020
Updated – 19 April 2021

Our Standard Variable Rate (SVR) is now 3.96% (3.96% APRC). This is part of our commitment to provide competitive mortgages and help people own their own home.

Most of our borrowing customers have rates either linked directly to SVR or will revert to this upon maturity. A lower SVR means customers could pay less in interest, and supports our commitment to help people own their own home.

The change was effective from 1 December 2020, and applied to our residential SVR in England, Scotland, Wales and Northern Ireland (excluding Gibraltar and Jersey). Customers currently paying the Standard Variable Rate saw their interest rate reduce with effect from 1st December 2020, and were contacted ahead of the change.

  

What is a Standard Variable Rate?

A standard variable rate, or SVR, is the interest rate normally charged once an existing mortgage customer’s initial deal period on a fixed or tracker rate mortgage comes to an end. Standard Variable Rate (SVR) means a customer’s payments can go up or down.

Unlike base rate tracker mortgages, SVRs do not track the Bank of England Base Rate, instead the rate customers pay on a SVR mortgage is determined by their mortgage lender.

A SVR mortgage offers customers the benefit of being able to make unlimited overpayments without penalty, allowing borrowers to reduce the size of their mortgage loan, which if maintained may mean they repay their mortgage earlier.

 

What did the customer need to do?

If the customers pay by Direct Debit then they weren’t required to do anything, we arranged collection of the revised monthly repayment. If however a customer pays by Standing Order then they would need to contact their bank to amend the monthly payments instruction.

 

The SVR is a variable rate, subject to ongoing review and may change in the future.

Mortgages are subject to affordability and lending criteria.

 

YOUR MORTGAGE WILL BE SECURED ON YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.