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Standard Variable Mortgage Rates
esalrtjkvaoei
Posts: 2 Newbie
Can somebody please explain to me why the Alliance and Leicester standard variable rate is 4.99% when most others are 3.5% to 4%. There doesn't seem to be any pressure on then to pass on the Bank of England base rate cuts. I am stuck with them for the time being as I am about to finish my fixed rate term and most of the equity in the house is gone.
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Comments
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There is no obligation to pass on any cuts on an SVR, unlike a tracker.
Have you contacted them to see if they have any other options for you, e.g. a fixed rate?0 -
Check that you definitely go onto the SVR and not a tracker as I thought some A&L deals did. Might be Abbey though - always get them mixed up0
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I have phoned them and I definitely go onto the SVR when my fixed term ends. They also confirmed that they will definitely not offer me any other deals. They used some sort of house price index to value my property over the phone and it had gone from £158000 (2007) to £135,500 which I was horrified by. As a result nearly all the equity is gone so I'm not eligible for any fixed options. A friend of mine is with RBS and they're offering him fixed rates based on the orignal value of his house, they do not need to revalue. I don't really understand why.
It's not the end of the world as the SVR is similar to the fixed rate I was paying, it just seems unfair and my options feel very limited, especially if the base rate starts increasing!0 -
Its possible that a lot of the funding for the mortgages on the SVR is not linked fully (or at in in some cases) to the boe rate.I don't really understand why.
They are either looking to reduce the mortgage book on the A&L side or you are asking too early what deals they can offer you.it had gone from £158000 (2007) to £135,500 which I was horrified by.
Thats not a lot. Its early days yet and you could get to £100k potentially.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Yorkshire Building Society is also 4.99% SVR and has been for a while...not going down...
Anyway good or bad move i've fixed for 5 yrs now so can't do much about it!!A friend is a present which you give yourself (R.Stevenson)
Happiness seems made to be shared (Jean Racine)0 -
monmouthshire b.s. is 5.25% so there's always someone worse off than you.
b.s. could stand for something else with these people.0
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