Standard variable mortgage (SVR)
A standard variable mortgage is based on the lender's basic mortgage rate,
commonly known as the Standard Variable Mortgage Rate. It is important to note
that SVRís can vary from lender to lender, which is why it is important to do
your homework and shop around, or better still allow an independent broker
do the legwork for you.
The SVR is usually the rate that customers revert to after a fixed,
capped or discount
This mortgage is regarded by some as the least complex mortgage type with the
interest rate usually varying (rising and falling) in response to changes in the
UK base rate, although lenders have been known to change them outside of this
event as well. The base rate is set by the Bank of England and lenders are free
to decide for themselves the amount that they will alter their own interest
rates by in relation to these movements in base rate.