Understanding Your Standard Variable Rate (SVR) Mortgage
A Standard Variable Rate (SVR) mortgage is a type of home loan where the interest rate can go up or down. It's set by the lender and typically changes based on the Bank of England's base rate, but the lender can also change it independently. Unlike fixed-rate mortgages, your monthly payments are not guaranteed to stay the same over the life of the loan.
When you're on an SVR, your lender will usually give you some notice before they change your rate. It's important to understand how these changes can affect your mortgage payments. Even small increases in the variable rate can lead to significantly higher monthly outgoings over time.
This calculator is designed to help you understand the potential impact of changes to your Standard Variable Rate on your monthly mortgage payments. By inputting your current mortgage details and hypothetical rate changes, you can get a clearer picture of how your costs might fluctuate.
function calculateSVRImpact() {
var currentMortgageBalance = parseFloat(document.getElementById("currentMortgageBalance").value);
var currentSVR = parseFloat(document.getElementById("currentSVR").value);
var newSVR = parseFloat(document.getElementById("newSVR").value);
var remainingTermYears = parseFloat(document.getElementById("remainingTermYears").value);
var resultDiv = document.getElementById("result");
resultDiv.innerHTML = ""; // Clear previous results
if (isNaN(currentMortgageBalance) || isNaN(currentSVR) || isNaN(newSVR) || isNaN(remainingTermYears) ||
currentMortgageBalance <= 0 || currentSVR < 0 || newSVR < 0 || remainingTermYears 0) {
currentMonthlyPayment = currentMortgageBalance * (monthlyCurrentRate * Math.pow(1 + monthlyCurrentRate, remainingMonths)) / (Math.pow(1 + monthlyCurrentRate, remainingMonths) – 1);
} else {
// If rate is 0, payment is just balance / months
currentMonthlyPayment = currentMortgageBalance / remainingMonths;
}
// Calculate monthly payment for new SVR
var newMonthlyPayment = 0;
if (monthlyNewRate > 0) {
newMonthlyPayment = currentMortgageBalance * (monthlyNewRate * Math.pow(1 + monthlyNewRate, remainingMonths)) / (Math.pow(1 + monthlyNewRate, remainingMonths) – 1);
} else {
// If rate is 0, payment is just balance / months
newMonthlyPayment = currentMortgageBalance / remainingMonths;
}
var paymentDifference = newMonthlyPayment – currentMonthlyPayment;
var annualDifference = paymentDifference * 12;
resultDiv.innerHTML = "
Calculation Results:
" +
"Current Estimated Monthly Payment:
£" + currentMonthlyPayment.toFixed(2) + "" +
"Estimated Monthly Payment at New Rate:
£" + newMonthlyPayment.toFixed(2) + "" +
"Change in Monthly Payment:
= 0 ? "red" : "green") + ";'>" + (paymentDifference >= 0 ? "+" : "") + "£" + paymentDifference.toFixed(2) + "" +
"Estimated Annual Change in Payment:
= 0 ? "red" : "green") + ";'>" + (annualDifference >= 0 ? "+" : "") + "£" + annualDifference.toFixed(2) + "";
}
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