SVR Rates

wendfrombev

Hi all,
Maybe a daft question but here goes!!
Sorry to ask this but is the SVR linked to the bank of england rate?

The reason why I ask is I am currently paying the SVR (Halifax @ 7.25%)

Due to the BoE rate coming down will the Halifax reduce the SVR?

The reason I ask is when I took out my last deal 2 years ago it says in my paperwork that when this deal ends it will go onto the SVR of 6%????
This is so confusing....

_Andy_

Lenders aren't obliged to change their SVR in relation to the BOE BR.

The illustration you had at the time was based on what the Halifax SVR was then. Being a variable rate in can and will change over time.

youngmoney_2

Hi Wendy,

Exactly as Andy says, if you look at the wording of your product it will say something like "...will revert to our Standard Variable Rate, currently 6.00%).

I imagine from what you've written you took out a 2 year product, so I'm guessing the jump in payments when you reverted on to the current SVR was a fair whack.

Dependent on your circumstances and loan/deposit size, you should still be able to get a much better scheme than Halifax's variable rate, so I'd advise you to speak with an independent mortgage adviser or financial adviser so they can run you through your options and take you through the best course of action.

A good adviser will explain anything you don't understand in plain English.

borntobefree

Hi

Recently, because of the credit crunch, the SVRs of Bank's and Building Socs is not moving in line with the BOE rate. The BOE rate is heading down and SVRs are going up.When your deal comes to an end you will need a new deal (fixed rate or tracker) as the SVR is never a good deal at any time.

Hope that helps

wendfrombev

Hi Thank you so much for your replies.

Greatly appreciated

THANKS xx

riqi

I'm the same, also with A&L SVR @ 4.99%. My LTV is 90% (or so they say), so not so bad. But I'm equally stuck as I can´t really go anywhere else for a better rate.

I really hope the rates stay this low for time to come...

Wutang_2

plm106 wrote: »

I have recently come off a fixed rate to be automatically put onto an extortionately high SVR- 5% at A&L

5% is really not that high.