With interest rates remaining at a historical low, many lender Standard Variable Rates are very competitive. This has lead to a great fall in the number of remortgages, as many borrowers stay with their lender SVR when their fixed-rate deal expires.
Unfortunately, the drops in base rate arent always passed on by mortgage lenders . Despite recent news that the cost of mortgages is coming down, the average SVR remains 4.7% – not even close to being in line with the base rate.
Hannah-Mercedes Skenfield of Money supermarket was reported as commenting: "Borrowers need to be aware that lenders are free to price their SVR as they please and therefore an SVR deal might not be the best way to get the most benefit from the low base rate environment. We have seen some of the smaller building societies hiking their SVRs so don’t be surprised if we see increases elsewhere."
If you require any advice please visit http://mortgagesolutions1.co.uk