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 6.99%
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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.

Get help from an expert

Talk to one of our friendly advisers about your options.
Will I receive advice?
It's your choice
9am - 5pm Monday to Friday
9am - 1pm Saturday
Calls to 03 numbers cost the same 01 or 02 landline numbers, even when calling from a mobile.

How to switch to another mortgage deal

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.
Any mortgage arrears should be less than or equal to the value of 1 months mortgage payment at the time of applying for and completion of a new deal.
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 underpaying your interest until next March, this may mean higher mortgage payments in the future.

What happens if the SVR has gone down 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 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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Switching your mortgage deal

There are two ways you can apply to switch your mortgage deal with Chelsea Building Society:
  • Without advice - online
  • With advice - over the phone.

Without advice - online (execution only)

If you apply to switch your mortgage deal without advice, online, it's known as an 'execution only' application. It’s designed for 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.
It does mean that you won't receive advice on your mortgage switching application. But if you change your mind and decide you'd like some advice, you can swap how you apply from online to over the phone.
Please note that if you have previously spoken to us over the phone about this application and decide to proceed with your own choice by applying online, then any advice we have given you will no longer apply.
Before applying to switch your deal online, you must be aware of:
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.
Remember...
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
We'll still assess whether you can afford the mortgage.
If you're unsure about any of the above, switching your mortgage deal with advice may be more suitable for you.

With advice - over the phone

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.