What is the Standard Variable Rate — and why does it matter?
Every mortgage lender in the UK sets their own Standard Variable Rate (SVR). It is the default rate you move onto when your fixed, tracker, or discounted deal comes to an end — and lenders can change it at any time, independently of the Bank of England base rate.
In 2026, most high street lender SVRs sit between 7% and 8.5%. If your current fixed rate is 4.5% and your outstanding mortgage is £250,000, moving onto even a 7% SVR would increase your monthly payments by roughly £350–£400. Over a year, that is £4,200–£4,800 of avoidable extra cost.
The good news is that you do not have to accept the SVR. Remortgaging to a new competitive deal can bring your rate back down — often to well below what your lender is offering on SVR. The key is acting in time.
The 3–6 month rule: why timing matters
Most mortgage advisers — including the team at Mortgage International — recommend starting your remortgage process 3 to 6 months before your current deal expires. Here is why this window is so important.
Many lenders allow you to secure a new mortgage offer up to 6 months in advance. This means you can lock in today's rates without your new deal starting until your current fix ends — so there is no overlap and no early repayment charge.
Starting early also gives you time to compare the whole market properly, submit your application, wait for the lender's valuation and credit checks, and have your new mortgage confirmed well before your expiry date. If you leave it until the last few weeks, you may be rushed into a suboptimal deal or — worse — slip onto the SVR while your application is still being processed.
- 6 months before: start researching rates and speaking to a broker
- 4–5 months before: submit your remortgage application
- 2–3 months before: your new offer is typically in place
- At expiry: your new rate activates seamlessly — no SVR period
Early repayment charges: the trap to avoid
Before you can remortgage, you need to check whether your current deal has an early repayment charge (ERC). ERCs are fees levied by lenders if you pay off your mortgage — or switch away from it — before the agreed term ends.
On a typical 5-year fix, ERCs often work on a sliding scale: for example, 5% in year one, 4% in year two, reducing to 1% in year five. On a £300,000 mortgage with 18 months to run and a 2% ERC, that is a £6,000 penalty. In most cases, paying this to escape a very high SVR makes financial sense — but you need to do the maths carefully.
The easiest way to avoid ERCs entirely is to remortgage right at the point your current deal expires. If you start the process 3–6 months early, your new deal can be lined up to begin on exactly that date.
It is also worth noting that many mortgages allow overpayments of up to 10% of the outstanding balance per year without triggering an ERC. If you are considering reducing your loan before remortgaging, check this threshold first.
What if you do nothing?
If your fixed rate expires and you have not arranged a new deal, your lender will automatically move you onto their SVR. You will receive a letter — sometimes only a few weeks in advance — informing you of the change. At that point, your monthly payment will increase, often significantly and with very little notice.
Some borrowers assume their lender will automatically offer them a good retention deal. While lenders do sometimes contact existing customers with product transfer offers, these are not always competitive with the full market. A product transfer (staying with your current lender) can sometimes be a good option — especially if it is quick and avoids legal fees — but it should always be compared against the wider market before you commit.
If you are already on the SVR, do not panic — but do act quickly. There are no ERCs on the SVR, which means you can switch to a new deal at any time with no penalty. The sooner you remortgage, the sooner you stop paying the higher rate.
How Mortgage International can help
We proactively track our clients' mortgage end dates and contact you well in advance of your deal expiring — so you are never caught off guard. Our advisers search deals from over 90 lenders, including rates not available directly on the high street, to find the most competitive option for your situation.
We handle the paperwork, liaise with your new lender, and coordinate the switch so that your new rate starts the day your old one ends. The process is typically straightforward for remortgages where the loan amount is not changing — and in many cases our clients's legal fees are covered by the new lender as a remortgage incentive.
Whether your deal ends in 2 months or 6, now is the right time to start the conversation.