Standard Variable Rates (SVR) have been stable for well over a year as a result of the low Bank of England base rate, last changed to 0.50% on 5th March 2009.  Great news for those clients who are on a SVR rate, however, the big question is when is this rate likely to change and if I am getting jumpy are there options open to me?

When this rate will change will depend upon many factors, the least of which are the Government’s austerity measures and how these will impact on inflation over the coming months.  These are likely to impact in an upward direct on inflation and this will put more pressure on the Monetary Policy Committees decision making.

Options open to you have now widened as Barclays is offering borrowers a Barclays Base Rate tracker mortgage at 2.18% above base rate (pay rate of 2.68%) at 70% LTV, with no application fee, free legal work and valuation as well as £300 cash back to cover their existing lender’s exit fee.  Customers will have access to its Switch & Fix offer, which enables borrowers to switch to a Woolwich fixed rate mortgage at any time without paying any early repayment charges.

Therefore, if you are on the Halifax’s SVR of 3.50% you are able to switch over to a lower deal and the only costs is the time and effort to move the deal to a more competitive rate.  If you want to discuss the options open to you please do not hesitate to get in touch, with your Independent Mortgage Advisors, Limetree Financial Services.

Andrew Fowler worked for Limetree Financial Services until December 2010. Feel free to contact another member of our team for help or advice.

Posted in Mortgages, News, Remortgaging