Standard Variable Rate

We are reducing our Standard Variable Rate (SVR) linked to some of our mortgage products, as part of our commitment to providing competitive mortgages and helping people own their own home.

We are reducing our Standard Variable Rate (SVR) linked to some of our mortgage products, as part of our commitment to providing competitive mortgages and helping people own their own home.

What’s changing?

  • Residential SVR reducing to 3.96%
  • In England, Scotland, Wales and Northern Ireland (excluding Gibraltar and Jersey).

When is the Standard Variable Rate changing?

The new rates will be effective from 1 December 2020. 

Why is the rate changing?

Most of our borrowing members have rates either linked directly to SVR or revert to SVR upon maturity.  This rate reduction will provide our members with competitive SVR providing good value.  

What is a Standard Variable Rate?

A standard variable rate, or SVR, is the interest rate normally charged once an initial deal period on a fixed or tracker rate mortgage comes to an end. Standard Variable Rate (SVR) means 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 an SVR mortgage will be 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 interest on their mortgage and if maintained may mean they repay their mortgage earlier.

What does this mean for customers who have an SVR or SVR linked product?

These customers will see their interest rate and monthly repayments reduce with effect from 1st December 2020, we’ll contact all affected customers ahead of the change. 

What does the customer need to do?

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

The SVR is a variable rate, subject to ongoing review

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

 

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