When your existing mortgage product comes to an end, you’ll be moved onto your lender’s standard variable rate (SVR) or Base Rate Tracker depending on what the lender has chosen, unless you choose to switch to a new mortgage product.
Some lenders may also let you take out a mortgage on their SVR or Base Rate Tracker. Please note you rate will be liable to change throughout the term.
How is Gen H's Base Rate Tracker calculated?
Our Base Rate Tracker is based off of the Bank of England Base Rate which can fluctuate.
In practice, this means that if the base rate increased by 1% the base rate tracker would increase by 1%. If the bank of England base rate went down by 1% your mortgage rate would decrease by 1% and so on.
When your existing mortgage product comes to an end, you’ll be moved onto Gen H’s Base Rate Tracker unless you choose to switch to a new mortgage product.
We will be given the choice to switch (subject to T&Cs) onto our available rates before your mortgage product comes to an end and you're moved onto our Base Rate Tracker.
How does this compare to how other lenders SVR’s are calculated?
Every lender sets their own Standard Variable Rate, and this can increase or decrease at any time.
While the SVR can be influenced by changes in the Bank of England base rate, unlike tracker mortgages, SVRs do not track the base rate at a set percentage.
They don't have to follow it. A lender can choose to raise or lower its SVR whenever it wants.
In practice, this means that if the base rate increased by 1%, a lender might decide to:
Increase its SVR by 1%
Increase its SVR more than 1%
Increase its SVR by less than 1%
Leave the SVR unchanged
If the base rate went down by 1%, a lender might lower its SVR by 1% or less, or not lower it at all.