6 Jan

SVRs 'a sensible option' for people with low mortgage balances

SVRs 'a sensible option' for people with low mortgage balances

Standard variable rate (SVR) products are still a good option for people who are close to finishing their mortgage repayments, one market commentator has asserted.

Andrew Hagger, of Moneynet.co.uk, claimed that among the other options available to borrowers, SVRs can still be a good choice.

He explained that, due to the current pricing on fixed-rate mortgages, switching from an SVR to a different loan product may not make a vast difference to anyone who owes £40,000 or less on their home.

Moneyfacts.co.uk reported that eight lenders have increased their rates on their SVR offerings, meaning that some of the deals on the market have rates of nearly six per cent.

Mr Hagger stated that, while this may seem high in the current market, it may not make as much of a difference as some homeowners think.

"The current rate and fee combinations on fixed-rate deals make sitting on the fence a sensible option for some borrowers," he added.

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