Standard Variable Rate Mortgages - Where Have They All Gone

[BBB]

I was having a discussion with a good friend earlier today and he mentioned that finding a mortgage lender who will offer the SVR is nigh on impossible. So I did a bit of surfing of some of the banks websites and sure enough he was right. Of the ones I checked (Nationwide, Halifax, Llloyds TSB, Woolwich/Barclays) none of them are offering their SVR's and they are only advertising their trackers and fixed rates.

Of course the fixed rates are very poor. The best 5 year one I found in my little look was with the Woolwich at 4.69%, if the loan to vale is 60% or less. With the base rate at 1.5% this is very poor value, especially when I look at the deal I got 2 years ago, which was 4.99%. Base rates at that time were 5% and they went up to 5.25% as I finalised my re-mortgage.

Once again the financial institutions are really stuffing us.

[argentarius]

Re: Standard Variable Rate Mortgages - Where Have They All Gone

The financial institutions are being stuffed by the government pressurising them to reduce their SVRs to unreasonably low levels. That's why they are no longer offering SVR mortgages to new borrowers - they are not profitable.

Financial institutions were pricing significantly below cost 2 years ago; now they are pricing realistically given the state of the economy and the housing market.