Standard Variable Rate
This is a standard interest rate, which a lender will set and can go up or down in line with market rates (such as the Bank of England’s base rate).
Advantages
- You have more flexibility and can usually repay your mortgage without any early repayment charges.
Disadvantages
- Your monthly payments can go up and down and this can make budgeting difficult.
- Standard variable rate mortgages are not usually the lowest interest rates lenders offer.