SVR versus a tracker: the core difference
An SVR is set by the lender. It can change when the lender chooses, and it does not have to move in line with the Bank of England.
A tracker is rules-based. If it is “base rate + 2.79%”, it can only move when base rate moves, and it normally moves by the same amount.
What happens if base rate rises by 0.50% from 3.75% to 4.25%?
On your tracker, the maths is simple. If base rate rose to 4.25%, the tracker would rise to 7.04%.
On your current lender’s SVR, there is no fixed formula. If your SVR is 6.50% today, your lender might increase it by the full 0.50% to 7.00%. They might increase it by less, or later, or they might move it for reasons not directly tied to base rate. The uncertainty is the trade-off with SVR.
Is it worth switching when the tracker is slightly higher today?
With the numbers you’ve given, the tracker is marginally more expensive at today’s rates, so the case for moving would need to come from somewhere else.
The main “somewhere else” is control. A tracker gives you transparency and a clear link to base rate. An SVR gives the lender discretion.
That said, if the tracker starts higher, and there are fees involved, it can be hard to justify unless you have a strong reason to value the tracker’s structure or you expect base rate to fall and want to benefit automatically.
The practical checks before you decide
This decision usually turns on fees and flexibility. If the tracker has a product fee, legal costs, or early repayment charges, it can make the switch poor value unless you keep it long enough. If it is genuinely low-fee and flexible, then it becomes more about your preference for certainty and how comfortable you are with base-rate risk.
It is also worth checking what your existing lender can offer as a product transfer. Even when the rate is not the absolute lowest, the total cost and admin can be materially better than a full remortgage.
Where a broker helps
This is a classic “headline rate versus real cost” comparison. A broker can model it properly using your balance, term, and likely time in the product, and show you the break-even point. They can also sanity-check whether a fixed rate would better match your risk tolerance if you want payment stability rather than a rate that can move month to month.
