The Homeowner Variable Rate (HVR) is the rate that homeowners who have applied for residential mortgages can change to when their mortgage deal expires. A number of banks adopted this new measure for buyers who submitted mortgage applications from June 2010 onwards.
The Homeowner Variable Rate may rise or fall during the remainder of a mortgage. One of the benefits of using this option is that buyers are not subject to early repayment fees when they decide to repay their mortgage early.
However, unlike a Standard Variable Mortgage Rate, this rate is not guaranteed to be 2% or more above base rate set by the Bank of England.