SVR mortgage holders should watch for better deals, says expert

Date:Monday 22nd March 2010
Author: Susanna Kavka

Karen Barrett, chief executive of, said householders should change lenders to protect against monthly increases in payments from existing providers.

She added: "With the base rate now remaining at a record low of 0.5 per cent for a full year, an increasing number of homeowners believe that staying on their lender's standard variable rate (SVR) is the best option for them."

Almost a third of homeowners said they would not consider switching mortgages for a better deal and the number of people on an SVR increased from 23 per cent in January 2009 to 31 per cent at the end of the year.

The recent rise in the number of deals saw gross mortgage lending increase by six per cent to £9.2 billion in January, according to the Council of Mortgage Lenders.