Re increase Of Standard Variable Rate

aayush

Hi can some please advise me to what i need to do as recieved a letter from my mortgage company re increase in the above

await a resposne

_Andy_

What do you mean what you need to do? If the rate's changing you need do nothing as they will adjust your payment for you.

shortchanged_2

It's a shame more people didn't realise that unless a lenders SVR is directly linked to the BoE base rate (it will say so on the terms) that they didn't realise that the V stands for variable and basically these lenders can set whatever rate they like.

The SVR was traditionally seen as a default rate that people go onto after a deal expires. Traditionally the SVR was always higher than the deals the lenders normally offer, hence why not many people would stay on SVR's.

However with this prolonged period of low rates this has ended up backfiring on many lenders who would not have expected so many borrowers to be on such low rates for such a long time. Hence the reason why I now feel this is just the beginning and we will probably see many lenders SVR's that are not tied to the base rate going up over the next few months.