What does SVR for term mean?

scoops82

Hi


I saw an earlier post regarding MAS Complete mortgages so I went and had a look.


The link below shows mortgages that might be available to me when the time to remortgages arrives but I am unsure on a couple of the terms.


https://compare.moneyadviceservice.org.uk/Mortgages/Step3


Taking the first CBS mortgage as an example....what does the SVR for term mean? Does it just mean you are on there SVR for the whole life of the mortgage? Is it me or does there SVR look low at 2.09% as mine is currently with Halifax with a current SVR of 3.99%.


Thanks
S

kingstreet

It's a variable rate for the term of the mortgage, yes.

However, it shouldn't be called the lender's standard variable rate as it looks more like the FLEXX for life rate if it's Coventry.

Either way, the rate moves at lender discretion and not due to any outside influence like BoE base rate.

scoops82

Thanks KingStreet - in theory that means they could increase it every month if they wished but as its a SVR for the term there would be no ERC to pay?


Does anyone know the typical costs in re-mortgaging - is it just a new valuation and admin fee / product fee you would be due to pay? Do you pay for a new valuation if its with the same lender? We have done a lot of work so we are hoping that the LTV has dropped from 90% to 70%


Thanks
S