When your fixed, tracker, or discounted mortgage deal comes to an end, something happens automatically if you don't take action: your mortgage rolls onto your lender's standard variable rate (SVR). No paperwork is needed for this to happen — it's the default outcome of doing nothing — but for most borrowers it's also the most expensive option available to them.
What the SVR actually is
Every mortgage lender sets its own SVR, which applies to any mortgage not currently tied into a specific deal. Unlike a tracker rate, which is contractually linked to the Bank of England base rate by a fixed margin, an SVR is set entirely at the lender's discretion. Lenders can raise or lower it whenever they choose, and different lenders' SVRs can vary by a surprising amount — there's no single "the SVR", each lender has its own.
Why SVRs usually cost more
SVRs are almost always higher than the rates available on fixed or tracker deals, often by several percentage points. Lenders price their most competitive rates as deals specifically designed to attract new or renewing customers who actively shop around; the SVR, by contrast, is where borrowers land by default, and lenders have historically relied on inertia — the fact that many people simply don't get around to switching — rather than competitive pricing to retain that business.
| Scenario | Typical monthly cost impact |
|---|---|
| Staying on a competitive fixed/tracker deal | Lower, competitively priced monthly payment |
| Lapsing onto the lender's SVR | Often a meaningfully higher monthly payment on the same loan balance |
On a typical mortgage balance, moving from a competitive fixed rate to an SVR can add a substantial amount to monthly repayments — frequently enough to notice immediately in a household budget, and enough over a year to be worth actively avoiding.
Steps to take before your deal ends
- Diarise the end date. Most deals run for two, three, or five years — mark the date well in advance, not when the letter from your lender arrives
- Start comparing around three to six months before the end date. Many lenders let you lock in a new rate with them, or apply elsewhere, several months ahead of your current deal expiring, often without paying anything extra until the switch actually takes effect
- Check for early repayment charges. If you're switching to a new lender before your current deal technically ends, confirm there's no penalty — usually there isn't once you're within the final months of a fixed term, but always check
- Reassess your situation. Your income, the property's value, and your credit history may have changed since you last applied — this affects which deals you can now access
- Consider using a mortgage broker to compare the whole market rather than just your existing lender's offer, which may not be the most competitive available to you
Common misconceptions
- "I'll automatically be offered the best new rate by my lender." Lenders don't proactively give you their best deal — you often need to actively request or apply for a new product
- "The SVR is temporary, so it doesn't matter." You can stay on it indefinitely, and many people do so for longer than they intend, simply through inertia
- "Switching is complicated, so it's not worth the hassle." A straightforward like-for-like remortgage or product transfer with your existing lender can often be arranged with minimal paperwork
What to do next
If your deal is ending soon, start comparing options now rather than waiting for the switch to happen automatically. Even a same-lender "product transfer" — moving to a new deal with your current lender without a full remortgage — is usually far cheaper than doing nothing and lapsing onto the SVR.