Standard Variable Rate Explained: How Much More Will You Pay?

The Standard Variable Rate is the default interest rate a lender charges once your fixed deal ends. It is set by the lender, not the Bank of England.

They can raise it or lower it whenever they want, for any reason, without giving you advance notice.

The average SVR across UK lenders is 7.13% as of June 2026.

But individual lenders vary significantly: Newcastle Building Society’s SVR is currently 6.31%, while Aldermore’s is 8.38%. The rate you land on depends entirely on who your lender is.

Here is what the same mortgage looks like at the average fixed rate versus the average SVR, as of June 2026.

On a £200,000 mortgage, the SVR costs £166 more per month than the average fixed rate. That is nearly £2,000 a year.

One thing. There is no Early Repayment Charge (ERC) on SVR, which means you can leave at any time without paying a penalty. If you have already drifted onto your lender’s SVR, you are free to switch the moment you find a better deal.

Why do so many people end up on it?
Because it happens automatically. No letter arrives asking you to make a decision.

Your direct debit simply goes up. Many people do not notice for months.

The fix is straightforward: know when your deal ends and start comparing alternatives at least three months before that date, ideally six. A whole-of-market broker will compare every available deal against what your existing lender is offering, usually for free.

Use our Remortgage Calculator to see what a new deal could save you.

Find an FCA-regulated mortgage broker.

Sources: Moneyfacts June 2026; HomeOwners Alliance June 2026. Rates are illustrative averages and subject to change. Your home may be repossessed if you do not keep up repayments on a mortgage. This article is for information only and does not constitute financial advice. Investing Insiders may earn a referral fee if you use our broker matching service.

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