Lenders Cash in by increasing Standard Variable Mortgage Rates

December 5, 2014 by in category Mortgage News with 0 and 0

Despite no movement in base rate for over five years, lenders seem to be cashing in on borrowers as new data shows SVRs are rising .

The average SVR has risen 0.12 per cent from 4.41 per cent to 4.53 per cent, Bank of England data published this week showed.

This is in contrast to fixed rates that over the same period,show that the average two-year fixed rate fell 88 basis points from 2.76 per cent to 1.88 per cent.

It appears that lenders of have been using higher SVRs and lower saver deposit rates to compensate for the fall in mortgage pricing for new borrowers.

This data suggests that lenders are cashing in on the SVR and are trying to squeeze as much money out as they can out of their existing customers.

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