Standard Variable Rate

waterman3

Hi all

I moved into my flat two and a half years ago and was on a fixed rate for the first two years.

When the fixed term ended i just let it go onto the Standard Variable Rate and since all the drops in the base rate i'm now paying about £60 less than when i was on the fixed rate.

However, I'm not sure whether it's a good thing to be on the SVR or not as that seems to be the default positon. Does anyone know the pros and cons of being on SVR?

thanks

_Andy_

Pros - overpayment flexibility, rate is currently low, no tie-ins.
Cons - no payment stability, rate could go up etc.

beecher

If you're close to one of the thresholds for LTV, ie 60%, 75%, 90% then you risk having to pay more if you decide to fix later. Indeed if you're close to 90%, you run the risk of not being able to get a new deal at all.