Mortgage News
Moneysupermarket warns borrowers over SVRs
Moneysupermarket has warned those on standard variable rates (SVRs) that they are not reaping the full benefit of the low base rate after its analysis showed the average SVR deal is now 4.2% above the base rate.
Some lenders have increased their profit margins on SVR deals in the space of twelve months by not passing on the full base rate cuts or subsequently increasing rates.
Hannah-Mercedes Skenfield, mortgages channel manager at Moneysupermarket, said a growing number of people are happy to revert to their current lender’s SVR offering.
However, an SVR deal might not be the best way to get the most benefit from the low base rate environment, Moneysupermarket said.
Skenfield said: “For those who have built up at least 20% equity in their home, it is likely that you will be able to find a better rate on a three year fixed deal. Those with little equity in their home are in a more difficult position and need to shop around to see what fixed and variable rate deals are available to them.”
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