SVR mortgages 'not reflecting base rate cuts'

Date:Monday 11th May 2009
Author: Susanna Kavka

The interest being charged on standard variable-rate (SVR) mortgages is not reflective of the falls in the UK's base rate of interest, it has been claimed.

According to Richard Mason at, lenders are "punishing" customers by refusing to lower their SVRs.

He made his comments in the wake of the announcement made by the Bank of England's Monetary Policy Committee last week following its monthly two-day meeting that it was holding the base rate at 0.5 per cent.

Mr Mason stated: "Typically, SVRs from prime lenders are never normally higher than one or two percentage points above bank base rate.

"However, as our research reveals the current average SVR is an incredible 4.2 per cent above base rate, with some as high as 5.99 per cent."

He added that implores the banks to bring down their lending rates to consumers to a level that is "fair and just".