Standard Variable Rate
Standard variable rate:
Standard variable rate is based on the lenders basic mortgage rate. This moves up and down depending on the Bank of England's base rate. Lenders are free to decide whether they will alter their own interest rate in line with movements in the Bank of England base rate. The down side with this type of mortgage is that if the interest rate rises your monthly repayments will increase, however the opposite is also true if the rate drops so should your repayments. (NB. Lenders do not always pass on reductions/increases in Bank of England base rates to borrowers).
