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SVR sitters warned not to miss out

SVR sitters warned not to miss out

Category: Mortgages

Updated: 26/03/2010
First Published: 26/03/2010

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 It is now over 6 months old so the content may be out of date.
Homeowners happily sitting on their lender's standard variable rate (SVR) have been warned not to miss out on the best fixed rate mortgage deals.

With base rate having remained at 0.5% for a whole year, an increasing number of borrowers have been content to move on to their lender's SVR once their discounted, fixed or tracker rate deal ended, research from unbiased.co.uk has revealed.

Almost a third (31%) of homeowners are on a SVR mortgage compared with just 23% in January last year.

Given best buy SVR mortgages remain lower than best buy fixed rate mortgage deals, Karen Barrett, the website's chief executive, said it was unsurprising that many homeowners were holding off from remortgaging to a fixed rate deal until the base rate started to rise.

"However, with the number of mortgage deals slowly increasing, homeowners need to make sure they aren't missing out on getting the best deals before the base rate starts to rise again," she added, "especially when in recent weeks some providers have been changing the SVR on their mortgages so not all of them are now as competitive as they once were.

"It can be very confusing for homeowners to keep track of which is the best mortgage for them and when is the best time for them to move onto a new deal.

"In the past, staying on your lender's SVR was financially crippling, and while this has certainly changed, homeowners need to stay alert and active to ensure they don't miss the best deals and see their monthly payments rocket."

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