Standard Variable Rate Mortgages

Your monthly payments rise and fall in line with changes in your lender’s standard variable rate of interest, not necessarily linked to the Bank of England base rate.
The advantages of the SVR rate is that the lender usually does not charge an arrangement fee and there are usually no penalties if you redeem the mortgage – often called early redemption penalties. The disadvantages include having no certainty over the monthly repayments. Initial monthly repayments will be more expensive than other options with an incentivised rate for an initial period.