lowest standard variable rate? and can we move from 1 svr to another banks svr?

rover25

Does anyone know the banks with the lowest standard variable rates? I know that when our 2 yr fixed deal comes to an end next June, we will be put on the svr (with Ulster Bank -Royal Bank of Scotland). Wondering if we can move from UB svr to another banks svr. I know there will be fees etc but if there was a large enough difference that would cancel out the fees we would prob give it a go.
Thanks

IPP-Believer

Yes you can move to another banks svr if you want to.

Is there any reason you would prefer a SVr to a fixed rate or tracker.

Really its a bit early to be looking at options as a mortgage offer will generally only last 3-6 months.

rover25

We are in negative equity when the 2 yr fixed rate deal expires. We won't have the option of another fixed or tracker. That's why I'm trying to suss out the svr.

rover25

another question! Can we still move to another banks svr if we are in negative equity?

feisty1

Simple answer NO Who would take that risk of you owing more money than yr house is worth! Are you in negative equity because of the amount you initially borrowed & property prices in yr area have dropped?

rover25

yep! We bought in March 07 (prob peak time here):rolleyes:

feisty1

'fraid u will have to stay with yr current lender on SVR, however if this is going to present u with difficulties go and speak to them. Youdo have a few months & as u know things can change pretty rapidly. However it will be sometime b4 we see 100%& 95% mortgages return to the marketplace. If yr in a position to and yr mortgage conditions allow try to overpay the mortgage to reduce the capital sum

IPP-Believer

rover25 wrote: »

We are in negative equity when the 2 yr fixed rate deal expires. We won't have the option of another fixed or tracker. That's why I'm trying to suss out the svr.

I am really sorry to hear that.

It leaves a very bitter taste in the mouth that there is money to pump into the banks but none for people who find themselves in your position.

Lets hope by next year the government offers to use one of these banks we all own to help out people who owe more than the mortgage is worth due to the drop in property prices.

beecher

IPP-Believer wrote: »

I am really sorry to hear that.

It leaves a very bitter taste in the mouth that there is money to pump into the banks but none for people who find themselves in your position.

Lets hope by next year the government offers to use one of these banks we all own to help out people who owe more than the mortgage is worth due to the drop in property prices.

I don't agree - I wouldn't want to see tax payers' money used to bail out people in negative equity. I feel sorry for them, but paying the SVR shouldn't be that big a deal if they haven't overstretched themselves.

IPP-Believer

Beecher I am not suggesting a bail out. Just that a bank comes in and offers higher LTV loans for existing home owners who find themselves in negative equity or even with an LTV above 90% through falling house prices.

They will still have to pay the mortgage back or lose their house like before.

Life will be tougth enough for those in negative equity without the banks withdrawing any chance of a fixed rate.

To give people no option but the standard variable rate that can be moved by the bank at their will is no way to treat people.

beecher

IPP-Believer wrote: »

Beecher I am not suggesting a bail out. Just that a bank comes in and offers higher LTV loans for existing home owners who find themselves in negative equity or even with an LTV above 90% through falling house prices.

They will still have to pay the mortgage back or lose their house like before.

Life will be tougth enough for those in negative equity without the banks withdrawing any chance of a fixed rate.

To give people no option but the standard variable rate that can be moved by the bank at their will is no way to treat people.

I'd be very concerned if banks started offering deals to people whose mortgage is higher than the value of their home. It is no way to run a business, and it is what got us into this situation in the first place. Thankfully it won't happen. Everyone knows what will happen at the end of their deal when they sign up for a mortgage, - there's never any guarantee that you'll be given another deal.