10 September 2018

As lenders hike their SVRs, it may be time to remortgage

The average standard variable rate (SVR) rose from 4.72 to 4.85 per cent in September, following the quarter-point hike in Base Rate, according to research from Moneyfacts. It means the difference between the average SVR and the average two-year fixed-rate mortgage is now 2.41 per cent, the greatest difference in a decade.

If ever there was a reason to remortgage, this surely is it. With Base Rate rising twice in the past year, there is nothing to say that it won’t rise further – and if you are on your lender’s SVR, that means a guaranteed jump in mortgage payments.

Some borrowers may be sat on their lender’s SVR because they believe themselves to be mortgage prisoners – unable to remortgage onto a better deal due to changes in their circumstances or affordability criteria. While this may have been the case even only a few months ago, lenders have pledged to offer better rates – although not necessarily the cheapest ones – to existing borrowers who don’t meet their criteria, for whatever reason.

There may be a better deal out there for you – it is certainly worth investigating to find out whether this is the case.

Share This Article