Could standard variable mortgage rates now begin to fall?
Mortgage funding costs are falling and many standard variable mortgage holders are wondering if their rate will now fall in line with decreased costs.
Standard variable mortgage rates rose by up to 0.5% in May despite the fact the base rate remained stable. This was an increase that adversely affected around a million mortgage-holders.
When the base rate first dropped to 0.5% lenders SVRs became extremely competitive and many home-owners chose to remain on their lender's deal when their fixed rate term ended.
With SVRs at such low levels few home-owners saw the need to review their rate and remortgage to a better offer.
This situation changed earlier this year when standard variable mortgage rates were hiked by several lenders. Many home-owners felt their rate increase was not justified, lenders responded by saying that increased funding costs had led to higher rates.
The question many now want answered is - with funding costs have fallen will hiked standard variable rates fall too? This is down to each lender but it is unlikely rates will fall for existing SVR holders.
If yours is a standard variable rate mortgage you are avised to review the market as currently lenders are cutting rates and releasing high loan to value deals. If you are looking to remortgage you may now find it easier to switch to a new low rate offer.
Act now and contact Deal Direct for a competitive mortgage offer. We can help you move onto a cheaper rate.
Call a Deal Direct adviser today.
Let us find you a remortgage to beat your current offer.
