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SVR mortgages
the_edu
Posts: 1 Newbie
Hi,
First post, be kind.
Been quoted a SVR of 3.59% which is 1% higher than my soon to expire fixed rate. I just wondered, with % rates so low, why is the SVR so high? I thought I would be saving money, switching onto the SVR product, clearly not.
Hopefully, I will be able to find a fixed deal, portable, for less than 2%?
First post, be kind.
Been quoted a SVR of 3.59% which is 1% higher than my soon to expire fixed rate. I just wondered, with % rates so low, why is the SVR so high? I thought I would be saving money, switching onto the SVR product, clearly not.
Hopefully, I will be able to find a fixed deal, portable, for less than 2%?
0
Comments
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Cynical view is that it encourages customers to lock into a fixed term product.
Business case view is that SVR is the default when a fixed term ends. With fixed term products often extending to 10 years. It's a degree of protection against the unexpected. BOE base rate should be in normal times back where it was a decade or so ago. Though doesn't seem likely in the near future.0
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