Understanding standard variable rate (SVR)

A standard variable rate is a lender’s normal rate without any deals or discounts.
When you reach the end of a fixed or tracker rate mortgage deal you will automatically move  to a standard variable mortgage rate. You will stay on SVR until you either switch to another deal or pay off your mortgage.
Our current SVR is 7.74%
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The pros and cons of staying on SVR

Pros

An SVR could go down which means your monthly mortgage payments will down, unlike a fixed rate.
You can make unlimited overpayments.
You can pay your mortgage off early without any early repayment charges (ERC).
You can switch to another mortgage deal at any time.

 

Cons

Standard variable rate is usually a higher rate than fixed or variable rate deals.
An SVR could go up which means your monthly mortgage payments will up, unlike a fixed rate.

What are my options?

Stay on SVR

You can choose to stay on SVR but in most cases it won't be the cheapest way to pay off your mortgage. Consider whether switching your mortgage to another deal would be a more affordable way to pay off your mortgage.

Switch to another mortgage deal

If you have more than £3,000 left to pay on your mortgage you can switch to another mortgage deal. It’s quick and easy.
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Log in to find a deal

You’ll need your mortgage account number. You can find this on any letter we've sent you about your mortgage.

If you work for YBS, you’re not able to switch online. Please call us on 0345 166 9510.

Get help from an expert

Talk to one of our friendly advisers about your options.
Will I receive advice?
It's your choice
9am to 5pm Monday to Friday
9am to 1pm Saturday
Calls to 03 numbers are charged at the same rate as 01 or 02 numbers from all phones.

 

How to switch to another mortgage deal

1

Review your options

Log in to review your options. Or you can speak to our team about your options over the phone.
2

Switch your deal

Switch online or over the phone. 
Once you’ve paid any fees we’ll confirm your new deal with a letter in the post. Your letter will give you the date you start your new rate. This is usually up to 5 working days after you ask to switch.

Things to consider

Quick checklist
If the mortgage is in joint names, you must have the authority to switch deal on behalf of all applicants.
The property should be your main residence.
Your mortgage must have less than one month's arrears and have no more than one missed payment in the last 12 months.
It will take up to 7 days to switch to a new deal. If the switch takes place up to the day before your usual payment date, we won't be able to stop the payment and you may end up paying the SVR rate for that month.

Things you'll need to call us for

Making changes to interest only mortgages
Moving from another mortgage provider
Changes to term or repayment type
Borrowing more.
If you are trying to do any of these, please call us.

 

 

What happens when our SVR changes?

If your mortgage is based on our SVR and it goes up, the amount you pay for your mortgage will rise too. If our SVR goes down the amount you pay for your mortgage will also fall.

 

Recalculate your monthly payment

If there's been a change to our SVR we will write to you to recommend that you have your monthly payments recalculated.

Why recalculate your monthly payment?

If your mortgage payment is linked to our SVR it will be affected when the SVR goes up or down.

How this will affect your monthly payments?

We review your mortgage account annually so we normally recalculate any change to your monthly mortgage payment once a year on 31 December. Any changes to your new monthly payment will take effect from the following March.

This means that although your SVR mortgage is changing, your mortgage payment will stay the same until March next year.

What happens if the SVR has gone up and you don't recalculate your monthly payments?

You’ll be overpaying your interest until next March, this may mean lower mortgage payments in the future.

What happens if the SVR has gone down and you don't recalculate your monthly payments?

You’ll be underpaying your interest until next March, this may mean higher mortgage payments in the future.

What are the next steps?

If you’re happy to keep on paying the current monthly amount until March, then you don’t have to do anything.
If you would like us to recalculate your monthly payment amount please use the recalculation request form.

 

Trouble paying your mortgage?

If you find you cannot pay your mortgage, call us free on 0800 138 2402 as soon as possible so we can try to help you. For more information, read our guide page on what could happen if you're not able to pay your mortgage.
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How to switch your mortgage

There are two ways you can apply to switch your mortgage deal with Yorkshire Building Society:

  • Without advice ('execution only') – online and over the phone.
  • With advice over the phone.

Switching your mortgage deal online without advice

If you apply to switch your mortgage deal online, it is known as an 'execution only' application. It’s designed for those customers who have a good understanding of the mortgage application process and can be confident they will be able to choose a product that’s suitable for their needs.

If you proceed without taking advice, you are taking responsibility for choosing the mortgage. If you (customer) believe that the mortgage you have chosen isn't suitable for your needs, you will not be able to complain that the mortgage was unsuitable.

It does mean that you won't be eligible to receive advice on your mortgage switching application. But if you change your mind and decide you would like some advice once you've started your application, you can swap how you apply from online to over the phone.

Before applying to switch your deal online, you must be aware of the following:

  • The product you wish to apply for including the interest rate and its term.
  • Interest rate type e.g. fixed, or variable.
  • The early repayment charges associated with the product.
  • The price or value of the property you are looking to purchase or remortgage.
  • The loan amount you want to borrow.
  • The length of term required.

If you choose a mortgage without advice (execution only)

  • You should be comfortable choosing the right mortgage without our advice.
  • We won’t advise if the mortgage you select is the right choice for your needs, which means that you’ll be giving up the benefits of Financial Conduct Authority protection on mortgage suitability.

If you are unsure on any of the above, switching your mortgage deal with advice may be more suitable for you.

Benefits of receiving mortgage advice

A mortgage is likely to be the largest financial commitment you make in your life, therefore you may benefit from speaking to one of our mortgage advisers over the phone.

A mortgage adviser will be able to review your incomings and outgoings and make a suitable mortgage term and product recommendation to suit your individual needs.

An adviser will be able to provide guidance on the following, amongst other points depending on your circumstances and needs:

  • Mortgage term.
  • The interest rate on your chosen mortgage deal vs the product fee you may have to pay for selected deals where the interest rate is lower.
  • The affordability of the loan.
  • If a fixed or variable rate would best suit your circumstances.