Mortgage SVR higher than personal loan rate

Pat38493

Maybe I'm just behind the times, but is it normal that the SVR on mortgages would be higher than the unsecured personal loan rate for the same provider?

Example Nationwide - they just sent me a marketing email offering me a personal loan at 6.1%, but their current Mortgage SMR is 7.74% - seems a bit strange that you pay a higher interest rate on secured debt than unsecured debt.

Mark_d

If you're a clever person with an excellent credit history then you'd pay 6.1% on your loan, but you'd book a fix/tracker mortgage rate and therefore never pay the SVR.
If you're more of an average person then the loan interest rate you actually get, once you've applied and been credit checked, will be higher than the mortgage SVR

Hoenir

Read the small print have they actually offered you a loan at that rate? 

housebuyer143

Person loans are also over significantly fewer years meaning many won't be able to afford the repayments as they would for the same borrowing on a mortgage

born_again

Pat38493 said:

Maybe I'm just behind the times, but is it normal that the SVR on mortgages would be higher than the unsecured personal loan rate for the same provider?

Example Nationwide - they just sent me a marketing email offering me a personal loan at 6.1%, but their current Mortgage SMR is 7.74% - seems a bit strange that you pay a higher interest rate on secured debt than unsecured debt.

Well if you only want a max of £25K mortgage that is OK.
But want more & the most is £50K & that is 8.7% at best.

They also list max interest rate @ 29.9%

I bet that if you mention the reason for the loan is house purchase, then the interest rate rises, or they say no, we have mortgages for homes.

https://www.nationwide.co.uk/loans/loan-rates/