Close this search box.
Close this search box.

Fixed Rate Mortgage vs. Standard Variable Rate: Making Informed Choices for Your Mortgage

Fixed Rate Mortgage vs. Standard Variable Rate: Whether you value the stability of a fixed rate or the flexibility of an SVR, we're here to help you make an informed decision.

See if you pre-qualify for a mortgage

Enquire about a mortgage with our pre-qualifying affordability form. No imprint on your credit score.

Will not affect credit score

Congratulations on embarking on the exciting journey of homeownership or considering remortgaging your current property! As your trusted UK-based mortgage broker, we understand that choosing the right mortgage is a significant decision that requires careful consideration.

To help you make an informed choice, we’ll explore the key differences between two popular mortgage options: fixed mortgage rates and standard variable rates. Additionally, we’ll introduce the concept of product transfer and how it can benefit you. Let’s dive in!

Fixed Mortgage Rate: Steady and Predictable

Imagine having the peace of mind that your mortgage interest rate and monthly repayments remain consistent for a set period, say 2 to 10 years. That’s exactly what a fixed mortgage rate offers. With this option, you’ll enjoy the following advantages:

  1. Predictable Budgeting: A fixed mortgage rate allows you to plan your monthly expenses with certainty. You’ll know precisely how much you need to repay each month, making budgeting hassle-free.
  2. Protection Against Rate Hikes: In times of economic uncertainty or rising interest rates, you’ll be shielded from potential fluctuations. Your fixed rate remains unchanged throughout the agreed-upon term, safeguarding you from unexpected payment increases.
  3. Managing Risk: If you prefer financial stability and are risk-averse, a fixed mortgage rate might be the perfect fit. Knowing that your interest rate won’t change gives you security in uncertain times.
  4. Standard Variable Rate (SVR): Flexibility and Market Dependency

Standard Variable Rate (SVR)

The standard variable rate (SVR) is the default interest rate set by lenders and is subject to change at any time. While it offers flexibility, it also comes with certain considerations:

  1. Flexibility: An SVR mortgage allows you the freedom to make overpayments or exit your mortgage without incurring hefty early repayment charges. This flexibility can be appealing for those who expect changes in their financial situation.
  2. Market Dependency: SVRs often follow changes to the Bank of England’s base rate, but lenders have the autonomy to adjust them as they see fit. This means your monthly repayments could vary based on market conditions and lender decisions.
  3. Understanding Product Transfer: A Valuable Option

Product transfer

A product transfer, also known as a rate switch, is a process that allows existing mortgage customers to switch to a new deal with their current lender without moving their mortgage to a different provider. Here’s why product transfers can be beneficial:

  1. Convenience: A product transfer simplifies the refinancing process, as you stay with your current lender. This can save you time and paperwork, making the switch smoother.
  2. Cost-Effective: Product transfers often come with lower fees compared to remortgaging with a new lender. This can be advantageous, especially for borrowers looking to save on upfront costs.
  3. Suitability: Is staying with your current lenders and taking a product transfer the right thing for you now and longer term. The terms may no longer suit your current and future requirements. This is were a mortgage broker can help you decide between staying with your existing lender or moving to a new one.


At Clever Mortgages, our mission is to guide you through the mortgage maze and find the ideal solution for your unique needs. When choosing between a fixed mortgage rate and a standard variable rate, consider your financial goals, risk tolerance, and current market conditions.

Whether you value the stability of a fixed rate or the flexibility of an SVR, we’re here to help you make an informed decision.

Moreover, if you’re an existing mortgage customer, don’t overlook the potential benefits of a product transfer. It could be a valuable option, providing you with convenience, ease, cost savings, and the opportunity to avoid early repayment charges. However, its wise to compare this to moving to a new lenders products.

Remember, your mortgage is a significant financial commitment, so let’s work together to ensure you secure the best mortgage option that aligns with your goals and circumstances. Get in touch with us today, and let’s start your journey towards homeownership with confidence!


If your fixed rate ends, or is coming to an end, you will be on a Standard Variable Rate (SVR). This is linked to the Bank of England’s interest rates and will be higher than what a fixed rate will be.

In these times where rates are rising at an alarming rate at the moment (avg lenders standard variable rate (SVR) 7.8% as of July 2023), a fixed rate or product transfer could be a good option. We don’t know when rates will drop.

They will drop in time, but we doubt we will see the 1% and 2% mortgages for a while. Speak to one of our brokers about the best option on fixed and variable rates.

You can start looking at another mortgage product 6 months before your fixed rate ends.

Any questions? We would be happy to answer any of your questions in a free no obligation chat.

Call us on 0800 197 0504 or use the callback form and we will call a time convienient for you.

Skip to content