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SVR increases gather pace

SVR increases gather pace

Category: Mortgages

Updated: 07/01/2010
First Published: 06/01/2010

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The historic low 0.5 per cent Bank of England base rate has done nothing to abate rises in mortgage providers' standard variable rates (SVR), research conducted by Moneyfacts.co.uk has revealed.

In fact, six mortgage providers have increased their SVRs since the measure was slashed in March last year. They include:

  • Ipswich BS: SVR increased by 0.50 per cent to 5.49 per cent
  • Scottish BS: SVR increased by 0.25 per cent to 5.29 per cent
  • Cambridge BS: SVR increased by 0.59 per cent to 4.59 per cent
  • Accord Mortgages: SVR increased by 0.65 per cent to 5.99 per cent
  • Marsden BS: SVR increased by 0.46 per cent to 5.95 per cent
  • Mansfield BS: SVR increased by 0.35 per cent to 5.59 per cent.

"There is little or no incentive for borrowers, particularly those with little or no equity, to find a new deal when in all likelihood they will have to pay a higher rate," commented Darren Cook, spokesperson for Moneyfacts.co.uk.

"By increasing the SVR, lenders are actively trying to encourage borrowers to find a new mortgage deal, but many are unlikely to act until a significant base rate increase is a real possibility."

The highest SVR at present is 6.45 per cent from Chesham BS.

There are, however, a number of lenders that have reverted to SVR rates as low as 2.50 per cent, including Cheltenham & Gloucester, Cheshire BS, Derbyshire BS and Lloyds TSB Scotland.

"Remaining on a SVR is an attractive option for many," added Mr. Cook.

"The latest remortgage approval figures continue to show record lows as borrowers continue to stay on a revert-to rate, rather than move onto a new deal."

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