Standard variable rates mortgages – how do SVRs compare?

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How do mortgage lenders’ standard variable rates compare? Some mortgage lenders have much more competitive standard variable rates (SVRs) than others. Find out about your mortgage lender’s standard variable rate.

Standard variable rate mortgages

A lender’s standard variable rate is the mortgage rate you pay when you’re not on a special deal. The standard variable rate – or SVR – varies between different mortgage lenders.

What the major lenders charge

There’s quite a big difference between the standard variable rates charged by the major lenders. It’s worth being aware of this if you’re switching to a lender – say for a fixed rate or tracker deal – because you may end up on the SVR once the deal runs out (perhaps if your property falls in value or your own circumstances change). Smaller building societies tend to have higher standard variable rates than bigger banks.

Here are some of the standard variable rates of the major lenders (details correct at time of writing on January 7th 2019).

Bank of Ireland: The standard variable rate is 4.74%. You can see the latest rate information here:

Barclays: The standard variable rate is 5.24%, but the ‘revert to’ or follow on rate after a deal has run out (called the BEBR) is 4.24% (Bank of England base rate plus 3.49%).

Clydesdale bank: The standard variable rate is 5.2%. There’s information about mortgage rates on Clydesdale Bank’s website.

Co-operative bank: The standard variable rate is 4.99%. You can check standard variable rate information on the bank’s website.

Coventry building society: The standard variable rate is 4.99%. You can read about their standard variable rate here.

Darlington building society: The standard variable rate is 5.95%.

First Direct: The standard variable rate is 4.19%. You can check First Direct’s mortgage rates on its website.

Halifax: The so-called ‘homeowner variable rate’ is 4.24%.

HSBC: The standard variable rate is 4.19%.

KRBS (Kent Reliance building society): The standard variable rate is an astonishing 6.83%. You can read more information about KRBS’s interest rates on its website.

Leeds building society: The standard variable rate is 5.69% (unchanged since the rate rise in August 18).

Lloyds: The homeowner variable rate is 4.24%. Its standard variable rate is 2.75%

Nationwide: The standard variable rate (also called the ‘standard mortgage rate’) is 4.24%. However, if you took out a mortgage on or before April 29th 2009, you’ll be on an interest rate of 2.75% (called the base mortgage rate) as long as you don’t remortgage to another Nationwide product.  It’s guaranteed to be no more than 2% above the Bank of England base rate.

Natwest: The standard variable rate is 4.24% and this is the same as the interest rate you pay after a preferential deal ends.

Newcastle building society: The standard variable rate is 5.99% (unchanged since the rate rise in August). You can read more about its mortgage interest rates on its website.

RBS: The standard variable rate is 4.24% and this is the same as the interest rate you pay after a preferential deal ends.

Santander: The standard variable rate is 4.99%. Its follow on rate is 4% (Bank of England rate plus 3.25%). This is the rate that you pay once your deal runs out, if you took out your mortgage deal on or after January 23rd 2018.

Saffron building society: The standard variable rate is 5.64%.

Skipton building society: The standard variable rate is 4.95% and the mortgage variable rate (MVR) is 4.99%. You can find up to date information about its variable rates on the Skipton’s website.

TSB: Their homeowner variable rate is 4.24%. If you applied for a mortgage or mortgage deal on or after 1 June 2010, you’ll go onto the standard variable rate once your deal runs out. This rate is 2.75%.

Virgin Money: The standard variable rate is 4.99%, although some customers qualify for what’s called a ‘loyalty rate’, which is 4.74%.

Yorkshire bank: The standard variable rate is 5.6%. You can find out about the mortgage rates on Yorkshire Bank products on its website.

Yorkshire building society: The standard variable rate is 4.99% (unchanged since the rate rise in August).

If you can’t switch mortgage lender

If you don’t have much equity in your property or your job circumstances have changed since you took out your mortgage, you may not be able to switch lender. In which case, if you’re on the standard variable rate and want to fix or move to a tracker, your best option is to see what your existing mortgage lender can offer you.

If you don’t want to borrow any more money or change any of the other terms, such as the length of the loan, the lender won’t normally need to check all your details (such as payslips or accounts, if you’re self employed).

SAVVY TIP: Some mortgage lenders offer a better deal to their existing customers. Others offer the most competitive rates to those who have other products with them (such as a current account).

Related articles:

The fees, rates and charges that really matter when you remortgage

Paying off your mortgage early – how to get the best results when overpaying your mortgage.

VIDEO: How an offset mortgage could save you money

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