1 As such, it avoided the devastating squeeze on profitability which led to the insolvency of a large part of the US Savings and Loans industry in the 1980s. But the wording of most SVR contracts meant that borrowers are vulnerable, not only to changing funding costs, but to many other types of influence which the lender judges to warrant a change in rates.
The SVR was increasingly replaced for new lending by the tracker mortgage, especially in the boom.