Could you get a better rate than your SVR?

If you’re a mortgage holder, it might be time to become familiar with one important mortgage abbreviation: SVR or Standard Variable Rate.

Ups and downs

When an existing deal comes to an end, it’s likely that you’ll be switched to your lender’s SVR. Whether you currently have a fixed rate, tracker or discounted rate mortgage, being moved to an SVR might mean you end up paying over the odds, perhaps without even knowing.

This is because SVRs rarely offer the most competitive rates. The SVR interest rate is usually linked to a percentage above your lender’s base rate, which means it can rise and fall. As a result, you’ll be more exposed to potential interest rate rises in the future. Many experts are predicting that rates will rise in 2022.

Switch to save

It can be difficult to know where to start looking for the best deal. This is where we can help. If you’re locked into a mortgage deal with exit charges, you don’t have to wait until it ends: we can help you find a deal three or six months before your lock-in period finishes. Mortgage rates are currently at record lows, so now could be the perfect time to see if you can save money by switching mortgages.

As a mortgage is secured against your home or property, it could be repossessed if you do not keep up mortgage repayments
Source: moneyfacts.co.uk

15 November, 2021

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