Standard variable rate (SVR) holders warned over interst levels

Date:Monday 23rd November 2009
Author: Susanna Kavka

Mortgage holders should check that the fall in the Bank of England base rate over the last year is being passed on to them, according to

Research by the price comparison site found that standard variable rate (SVR) mortgages are charging on average 4.7 per cent interest, meaning a reduction of 0.98 per cent in the last year, despite the Bank rate falling by 2.5 per cent in the same period.

Hannah-Mercedes Skenfield, mortgages channel manager at said: "Borrowers need to be aware that lenders are free to price their SVR as they please - and therefore an SVR deal might not be the best way to get the most benefit from the low Base rate environment."

She advised that those with little equity in their homes can be in a difficult situation and should shop around to find the best deal.

However, those with 20 per cent equity in their property may be able to find a better rate on a three-year fixed deal.

In related news, the website recently stated that there was encouraging news in the market with competitive products being launched.