What were SVR rates pre credit crunch?

iazcac

I am currently on a HSBC mortgage. Coming up to three years in. We were FTBs and after two year fix went onto the SVR.

With talk and speculation about when BoE will increase interest rates, what are SVRs likely to increase to (e.g what were they when the rate was c5%) - I cant imagine they were 8 times base rate.
(Although hsbc svr not formally linked)

I want to plan ahead and understand what my mortgage could increase to in coming years and consider if moving back to a fixed rate would be better.

Know no one has a crystal ball but any predictions based on past experiences?

opinions4u

Around the 7% mark. Some a little less.

Worst I got was c1990 at 15.4%.

Overpay. Get debt and LTV down. Keep your remortgage options open throughout the term!

"Normal" margin was typically 2% above base rate. I think this will remain wider for a few years yet.

Wallhart

Your nit going to see rates of 7%. BOE will be all over the banks when rated start to SLOWLY rise

getmore4less

As rates rise it is likely the margin on trackers and SVR will narrow.

before the crunch there were loads of tracker rates at around base+1% some lower, now they are typically base +2%+ with SVR having a bigger margin.

opinions4u

getmore4less wrote: »

As rates rise it is likely the margin on trackers and SVR will narrow.

before the crunch there were loads of tracker rates at around base+1% some lower, now they are typically base +2%+ with SVR having a bigger margin.

Normally I'd agree with you. Not so sure with Basel capital requirements etc.

iazcac

Thanks all. I am currently overpaying by £350 against a standard monthly payment of £950, so any rate increase wont effect my monthly budget just my OP.

The SVR suits for now now as it allows me to make larger OP. My ltv should be about 80% although banks automatic valuation said 85%. I could pay for a professional valuation but am going to plough on overpaying for a few months before looking at any remortgage. What others have posted on here has made me feel a bit better though (lets just hope its not like the 90s again!!)