SVRs - question

sitesafe

kingstreet wrote: »

Some lenders' deals end and the borrower reverts to the lender's standard variable rate. SVRs can be as little as 2.5% in the case of C&G and Nationwide, or as high as 5%+ for other lenders.

Sometimes products have a reversion rate which is different to the SVR. Off the top of my head, a good few dropped off a Woolwich fix onto BoE base rate + 0.45%, or a current rate of 0.95%.

There isn't a list of SVRs available anywhere I can think of. In the "old days" you'd have been mad to opt for a mortgage on SVR, but the lenders would allow it. Once SVRs dropped, lenders then barred borrowers from taking new mortgages on SVR.

thank you ... it's interesting to know ... so someone could have been on a fix and then revert to a cheaper SVR at the end; whereas someone could be on a cheap tracker (like me (at mo)) and revert to a more expensive SVR

Thrugelmir

sitesafe wrote: »

thank you ... it's interesting to know ... so someone could have been on a fix and then revert to a cheaper SVR at the end; whereas someone could be on a cheap tracker (like me (at mo)) and revert to a more expensive SVR

In fact the interest rate you pay on exit of the fixed term product should be part your decision when choosing one.

Don't just compare the current rates of interest.

Mortgage lenders make a sizable profit when people churn their mortgages and pay product fees for the privilege of fixing every 2-5 years.