6
Jan
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.
