The opinions expressed here are those of the authors. They do not necessarily reflect the views or positions of UK Finance or its members.

To encourage more customers to move to a better rate, Principality Building Society commissioned research to understand their motivations and how best to engage them with SVR communications.

Like many lenders, Principality Building Society has customers who choose to stay on the Standard Variable Rate at the end of their initial mortgage deal. 

In 2025, working with the research agency Boxclever*, they engaged with their SVR customers, customers on SVR with competitors, brokers and internal stakeholders. The research included social listening and qualitative interviews.

The headlines were: 

• Generally mortgage engagement is low:  Typically customers only re‑engage when action feels necessary or clearly beneficial.
• The broker picture: Most borrowers in our sample reverting to SVR appeared not to have engaged with a broker about this decision*. Brokers told us that compliance guidance mean that they would rarely recommend reverting to SVR, and certainly not for a 12 month+ period of time. However, customers on SVR, particularly those with a low mortgage balance, are not interested in engaging with brokers, even if they previously had. Reasons given were too much effort and, from both broker and customer with low balances, the cost of the broker service might be too high for the ‘gain’. 
• Customers on SVR can be broadly categorised into 4 groups.

Flexibility seekers: These customers deliberately chose to stay on SVR in the short term. For them, the flexibility of SVR makes the additional cost worth paying. Penalties and product fees may discourage them from switching to another deal.  They may be selling their property, re-mortgaging or want flexibility in relation to overpayments. They may be waiting for rates to go down, a cash lump sum or clarity on future plans. 

Deliberately unengaged: These customers often have low balances and are coming to the end of their mortgage term. Their mortgage is a low priority. They don’t think moving from SVR is worth the effort, their monthly repayment hasn’t changed for a while and they trust their lender. 

Feeling trapped: This group fear switching  or cannot currently switch as they are in arrears. They know they may be better off switching but worry that looking for a new product might affect their current position e.g. because of credit checks. They may have complex circumstances which discourage them from pursuing a better option. 

Misunderstanding SVR: This group don’t understand SVR. Some of this group understand variable rate but not the product they are on. They don’t want a fixed rate and believe the rate they are on is good. Some of them don’t know what rate they are on and how it compares to others. Some of them have limited financial literacy and may have false confidence. They distrust brokers. They don’t think they need to switch as they believe they are on the right mortgage rate for them. 

Some of the key learnings in relation to SVR communications were:

Clear, personalised financial benefit drives engagement: Messages that led with a concrete saving amount were immediately understood and more likely to prompt action.

A strong, simple call to action matters: Messages that clearly explained what to do next and reduced perceived effort were more compelling.

Reassurance reduces perceived switching effort: References to switching being simple, free, and supported - including access to an expert - increased confidence.

Learn more about Principality mortgages. 

* SVR Mortgage Motivations: Why members revert to SVR and stay on it, and how can our communications influence this behaviour? (December 2025, Boxclever on behalf of Principality Building Society).