London Mortgage Advice

A standard variable rate mortgage is based on the individual lender’s own base rate. This rate is the one that customers revert back to at the end of a fixed, capped or discount period. This is much higher than the Bank of England base lending rate.

When the Bank of England changes their base lending rate mortgage lenders will change their own base rate up or down. However, they are free to alter their base rate by different amounts than the Bank of England according to their own needs.

Standard variable rates have no tie in periods and therefore there is no redemption penalty attached to the loan. This means that when you pay off the mortgage by selling the property or maybe transferring to another lender there will be no penalty for doing so.

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London Mortgage Advice Ltd is authorized and regulated by the Financial Services Authority for residential mortgages and non investment insurance business. As we give independent advice we can offer you either a 'no fee' option where we are paid by the lender or you can pay our total fees. Typically this will be anywhere between 0.3% and 1% of the mortgage amount (based on a loan of £100,000 this would result in a fee of between £300 and £1000). In this instance we will rebate to you any commission we receive from the lender. THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.