SVR benefits 'vary between lenders'

Date:Wednesday 27th January 2010
Author: Susanna Kavka

The amount of money that borrowers can save by switching to a standard variable rate (SVR) varies greatly between institutions, according to

With the Bank of England base rate being set at 0.5 per cent for the past ten months, choosing to take out a SVR mortgage deal has been an attractive option for many house buyers.

However, the SVR rate that is charged by different lenders varies greatly, which could mean some consumers paying far more than others.

Earlier research by had also found that eight institutions, including Nationwide and Accord Mortgages, had all increased their SVRs since the base rate was cut.

Michelle Slade, spokeswoman for, said that a lot of SVRs have become disjointed from the base rate and are only passing on a fraction of the reduction.

However, she warned that those on lower levels may find themselves in the same position as Skipton's customers, who are facing an increase in their rates.