IR / SVR question

undetterred

I'm about to go onto YBS SVR @ 4.99%,the BOE is 0.5%.

If the BOE rises to 1% say,will YBS SVR rise to 5.49%? or does the BOE need to surpass 4.99% before YBS up the SVR.

foreversummer

YBS can do whatever they like with the SVR. Some lenders SVRs have gone up already even when the base rate has stayed at 0.5%.

Foreversummer

beecher

undetterred wrote: »

does the BOE need to surpass 4.99% before YBS up the SVR.

I doubt if that would ever happen - the SVR will never be at the same rate as the base rate and there will always be a margin.

Make sure you can cope if the rates go up - this time last year most SVRs were around 7% which is more 'normal' than the rates they are now.

Strapped

undetterred wrote: »

I'm about to go onto YBS SVR @ 4.99%,the BOE is 0.5%.

If the BOE rises to 1% say,will YBS SVR rise to 5.49%? or does the BOE need to surpass 4.99% before YBS up the SVR.

Do you have any other options, ie do you have to go onto the SVR?