'Increased competition' pushing SVR cuts

Date:Tuesday 12th January 2010
Author: Susanna Kavka

Falling standard variable rates (SVR) are being pushed down, which is partly due to increasing competition in the market, is the view of one expert.

Ray Boulger, from John Charcol, has commented that the rates are being driven down as the number of lenders who are waiting to launch products is increasing.

In addition, it is thought that the institutions are becoming more comfortable with the economic conditions, mainly due to the increase in house prices and the belief that interest rates will remain low for some time yet.

Mr Boulger's comments come as Yorkshire Building Society announced it is to cut its fixed-rates.

This decision by the institution comes just days after Halifax, Coventry, HSBC, Nationwide and Chelsea building societies all announced they are cutting the rates on some of their mortgages.

In December, John Carcol announced that fixed-rate mortgages were becoming less popular, with just 21 per cent of the company's clients choosing to take this form of product in November.