Standard Variable Mortgage Interest Rates
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Standard Variable Mortgage Interest Rates
According to an article in the Mortgage Finance Gazette, more than a third of homeowners are still on Standard Variable Mortgage Interest Rates. That is roughly 5 million households paying potentially thousands of pounds more a year than they need to. On top of that the latest study shows a further 1.1 million households are on the wrong mortgage deal. In 2017 this equated to £2.78 billion across the nation.
So we’re here to change that. There are few reasons why being on Standard Variable Mortgage Interest Rates would be more beneficial than selecting a mortgage product. We are on a solo mission to help people save money across the country. Now the simplest way to do that, is if you are on the SVR, contact your lender to ask what product transfer options are available to you. However that may not be the best solution to your problem. Quite often your Bank/Lender may not be the one offering the best product to suit your needs. As we said before, there are at least 1.1 million people on the wrong mortgage deal.
What Is The Standard Variable Mortgage Rate?
The Standard Variable Mortgage Interest rate or SVR is the bank standard rate that everyone goes on to once their mortgage product period ends. The problem is if you don’t keep on top of it, it happens automatically. This results in potentially paying hundreds of pounds more than you would if you just selected a new product. Maybe even more if you selected a product that was more beneficial, perhaps with a new lender. The most important thing you can do today if you are on the variable rate is speak to a mortgage advisor. You might save thousands of pounds over the next few years.
Who Has The Best Standard Variable Rate?
As we’ve mentioned, you probably don’t want to be on the SVR at all. But if you really want to know who has the best standard variable rate you’ll need to speak to a mortgage advisor. The problem is that the SVR of a lender changes, so who has the best one changes quite often too. You’ll probably find a mortgage advisor won’t charge you anything for a discussion to see if you could save money, we certainly don’t.
Can You Compare Standard Variable Rates In The Uk?
You can, but there isn’t a great deal of point to try and compare standard variable rates in the UK. They change, and sometimes they can change often, so you could compare on Monday, and your comparison would be wrong by Tuesday.
Do You Get Buy To Let Standard Variable Rate?
Absolutely. Just like with your residential mortgage, at the end of your product your Buy To Let will also go on to the Buy to Let Standard Variable Rate if you don’t take action. This is really important as your buy to let is probably there as a business, so to earn money. However if you are spending hundreds of pounds each month that you don’t need to, that doesn’t make good business. Every year millions of people compare their home insurance premiums to make sure they’re not paying too much. They don’t compare their mortgage though.
Who Has The Lowest Standard Variable Rate?
Likewise with comparing Standard Variable Mortgage interest rates, who has the lowest standard variable rate can change often. So today it may be Halifax or Natwest, but tomorrow it could be Santander. It would be pointless for us to tell you who has the lowest standard variable rate today, as you might not read this the same day as we post it. Actually we may not even post it the same day as it’s written.
What Is The Average Standard Variable Mortgage Rate?
So we haven’t worked out an average. If you’re with a high street bank it may only be a few percent. However if you’re with a more specialist lender it may be 4,5 or 6%. You should consider more why you would want to be on Standard variable mortgage interest rates. If it’s due to wanting to move soon, or wanting to wait for a few months to get a new fixed rate it’s probably not the best option.
If you have plans coming up that will mean you will want to change your mortgage there are products available that won’t charge you an early repayment charge. You can get flexible fixed rates with no Early repayment charge, or tracker rate mortgages with no Early Repayment Charges.
Does Each Bank Have Standard Variable Rates?
Most if not all Lenders will have Standard Variable Mortgage Interest Rates. They will review these regularly and adjust them as they see fit. A lot of people think that this means when the Bank of England base rate falls, so will standard variable mortgage interest rates. However this is not always the case.
What can I do?
The biggest change you can make today if you are on the variable rate is to review your mortgage. At the least call your lender. Ideally speak to a mortgage advisor that can go through your options and recommend the best mortgage product for your situation.
There are thousands of mortgage products on the market, you can’t compare them all without help. This is why you need an expert, to go through your situation and recommend the best solution for you. A lot of Mortgage Brokers don’t charge broker fees on a remortgage, like us.
If you haven’t remortgaged because you have Bad Credit and think you won’t be able to, you likely can remortgage, at worst you can product transfer. It’s absolutely worth speaking to someone, if only your Bank.
So in conclusion, speak to your Bank, better yet, speak to a specialist. But do something about it so it doesn’t end up costing you hundreds or even thousands of pounds a year.