Standard Variable Rate
Are you paying to much?
The dreaded SVR!
A standard variable mortgage is based on the lender's basic mortgage rate, commonly known as the Standard Variable Mortgage Rate. It is usually the rate that customers revert to after a fixed, capped or discounted period ends. This mortgage is regarded by some as the least complex mortgage type with the interest rate varying (rising and falling) in response to changes in the UK base rate. The base rate is set by the Bank of England and lenders are free to decide for themselves the amount that they will alter their own interest rates by in relation to these movements in base rate. Many Lenders will not automatically offer you a new rate when your special rate term ends, and you will automatically revert to your Lenders Standard rate. Providing that any redemption penalty period has expired, you should be free to look around and once again seek a new competitive rate from another Lender. We would recommend that you firstly find out the terms that can be offered to you from your existing Mortgage Company.
Disclaimer
James Raynor is Authorised and Reulated by the FSA (463141). You may be charged a fee for the processing of your application and this fee and we estimate that this fee will be £195. Your Home is at risk if you do not keep up the repayments of a Mortgage or any other loan secured against it.
