What Is The Standard Variable Rate (SVR)?

Understanding the standard variable rate (SVR), also known as the “revert rate,” is crucial when it comes to managing your home loan. When your fixed-rate loan term ends, your lender will automatically switch you to its SVR if you don’t take action.

Here’s the catch: the SVR often comes with a higher interest rate, leading to an increase in your monthly repayments. This phenomenon is often referred to as a “lazy tax” – the price you pay for not actively managing your loan.

Why The Standard Variable Rate Matters

Sticking with the SVR could cost you more in the long run. In most cases, the SVR is higher than the rates offered to new customers, meaning you could end up paying more than necessary. Being proactive and exploring your options before you’re automatically switched to the SVR is essential.

Guidance from Mortgage Brokers

We can help you understand the implications of the SVR and explore alternative loan options. Whether it’s renegotiating with your current lender or refinancing with a different one, our team can guide you through the process and help you make informed decisions.

By staying informed and seeking expert guidance, you can avoid paying more than you need to and ensure your loan works for you in the long term.