With interest rates through the roof, you might consider looking at a fixed-rate mortgage. This article shows the price gap between a fixed-rate and standard-variable-rate (SVR) mortgage.

The average rate for an SVR mortgage has risen past 7% for the first time since 2008. Meaning many homeowners are avoiding being transferred onto one as much as they can. Lenders will automatically put their borrowers onto their default SVR if they do not remortgage onto a new deal when their original term is over. With the state of interest rates at the moment, transferring from a fixed rate to an SVR mortgage could cost you hundreds of pounds more a month in mortgage payments. We have compiled a list of interest rates amongst the UK’s biggest mortgage lenders.


LenderVariable RateFixed RateDifference
TSB7.99%5.14%£268 pcm
Halifax7.99%4.49%£324 pcm
Santander7.75%4.63%£288 pcm
Natwest7.49%4.92%£238 pcm
Skipton6.54%4.98%£142 pcm
Nationwide7.74%4.74%£278 pcm
Virgin Money8.24%4.92%£312 pcm
Yorkshire BS7.49%5.18%£215 pcm
– Figures from 05/06/23 – Based on £150k borrowing over 25 years 85% LTV

How does a standard variable rate mortgage work?

If your mortgage term has come to an end and you do not remortgage onto another fixed rate, you will automatically be moved onto a standard variable rate. The rate is determined by the lender themselves and can raise or lower at any time. You, as the borrower, have no choice but to pay this. Changes to the Bank of England base rate can influence lenders’ rates.

What’s happening to standard variable rates?

The average SVR offered by the main mortgage providers in the UK is 7.85%, this is the highest it has been since 2008. This is a massive jump over the average 2-year (5.69%) and 5-year (5.17%) fixed mortgage rates.

Since December 2021, SVR figures have been rising regularly, but have significantly jumped within the past year. Whilst fixed rates have fallen.

Avoiding lender’s SVR

With many homeowners’ fixed terms coming to an end, they will face a spike in interest rates. However, you can still avoid the increased mortgage costs as much as possible. Here at Dolphin Financial, we can find the best lender’s rates depending on your situation.

If your term is coming to an end, you can usually lock in a new rate up to 6 months before the term end.

Further information

We take the whole-of-market approach to getting the right mortgage for you. This means we can see all lenders available, so we can find the best rates with your criteria.

If you would like to find out more, don’t hesitate to get in touch. We have a helpful team of expert advisers who are more than happy to discuss your needs. You can find our contact details here.

As a mortgage is secured against your home it may be repossessed if you do not keep up with mortgage repayments.


Caitlin Duffy

Independent Senior Mortgage, Protection, and Equity Release Adviser

Tel – 01928 761001

Email – caitlin@dolphinfinancialltd.co.uk