How we calculate your client's variable interest rate at the end of their product offer period

Standard Variable Rate (SVR)

When your client’s owner occupied mortgage comes to the end of the product offer period and they haven’t chosen to switch their mortgage to one of our other deals, their mortgage will move to a variable interest rate.

This variable interest rate will be our Standard Variable Rate (SVR) with a potential reduction applied depending on your client’s LTV. This means that if your client’s home has increased in value or if their mortgage balance has reduced their LTV, they might benefit from a lower variable interest rate being charged.

If your client’s LTV changes over time then their variable rate might go up or down. Please see the table below

What are the different variable interest rates?

The SVR is currently 6.39% variable. The table below outlines the current variable interest rates that may apply depending on your client’s LTV.

Loan to Value %

Variable interest rate payable

Greater than 85%

6.39% (Society’s SVR)

Greater than 75% but less than or equal to 85%

5.89%

Less than or equal to 75%

5.64%

Guide to share with your clients

We've developed a guide for you to share with your clients to help explain what happens to their interest rate when their mortgage offer period ends.

Read the guide

What you also need to know

How do we calculate your client’s loan to value?

We regularly review the UK House Price Index (UK HPI) which measures changes in the value of residential properties. We’ll use the latest valuation information we have to assess what your client’s approximate LTV is during our annual review of your client’s variable interest rate. If your client has made any improvements to their home, these might not be reflected in the LTV we use. If this is the case, or your client believes the valuation is inaccurate, we can revalue the property, however there will be a fee for doing this.

LTV annual review

We’ll review the LTV in March every year. We then write to customers who are on the variable interest rate if their mortgage payment will change as a result of this review

We also regularly review our variable mortgage interest rates. If we change rates, we’ll always let customers know what their new monthly mortgage payments will be.

Other changes that can affect the variable interest rate

Changes that would affect your client's mortgage at the time a change occurs:

  • Capital repayments.
  • Additional borrowing (also known as a further advance).

Changes that would affect your client’s mortgage on an annual basis:

  • Monthly mortgage payments (including overpayments).
  • House price changes.