Your first remortgage: how to avoid the standard variable rate trap
When your initial mortgage deal ends, most lenders automatically move you onto their Standard Variable Rate. The SVR is almost always much higher than what you were paying. Here's how the process works and when to start.
What is the SVR?
The Standard Variable Rate is your lender's default interest rate — the one they move you onto when your fixed or tracker deal expires. It's usually 1–3% higher than the best available deals. For a £200,000 mortgage, moving from a 4.5% fix to a 7.5% SVR means roughly £5,000 more in annual interest. This happens automatically if you do nothing.
When should you start looking?
Six months before your current deal ends. Some lenders let you lock in a new rate up to 6 months ahead with the ability to switch again if rates drop. Starting early means you're never caught on the SVR, and you have time to compare the full market rather than just your existing lender's retention offer.
Product transfer vs full remortgage
A product transfer is switching to a new deal with your existing lender. It's fast, doesn't require a new application, and involves no legal fees. A full remortgage means moving to a new lender — more work, but potentially a better rate. Your broker's job is to compare both and tell you which is better for your situation. Don't assume your existing lender's retention offer is competitive — it often isn't.
What's changed since you bought?
Your income might be higher. Your property might be worth more (meaning a better LTV band). Your credit might have improved. These changes can unlock significantly better rates. This is why blindly accepting your lender's retention offer without checking the market is so often a mistake.
Fees and costs to factor in
Some deals have product fees (usually £999–£1,499) that can be added to the mortgage. Valuation fees are usually free for remortgages with most lenders. Solicitor fees for a like-for-like remortgage are typically £250–£500. Factor these into the true cost comparison — a lower rate with a high fee is sometimes worse than a slightly higher rate with no fee.
Remortgage coming up in the next 6 months?
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