The momentum to increase standard variable rates on your existing mortgages seems to be gathering pace. Eight lenders (according to Moneyfacts) have so far increased their standard variable rate since base rate hit 0.5%.
The latest was Skipton building society - and this one did seem to upset a few people. They had a ceiling on their standard variable rate which meant that the majority of borrowers would not pay more than 3% over the base rate.
However due to 'exceptional market conditions' they will now increase it from 3.5% to 4.95%.
Now I don't want to be too hard on Skipton because in the context of the credit crunch building societies really have been having a hard time. However the trend is clear - standard variable rate mortgages look like they are getting more expensive.
What does this mean? Well, it means more and more people will start to benefit from remortgaging. In fact don't take my word for it - Santander, who are regular readers of this newsletter, reported that over 880,000 UK homeowners on tracker or fixed rate mortgages, could be looking to remortgage in the next six months
Should I stay or should I go?
Its not often I can get a quote in this newsletter from the mighty band The Clash but I just wanted to be clear:
If you are currently on a standard variable rate with your current residential lender
Then it is worth calling us and within a couple of minutes we will be able to tell you whether you could save money by switching lenders.
Simple as that. In fact, even if we can't save you money right now we'll put you on special watch (sounds painful but its not) and as soon as your variable rate does rise and it is worth switching, then we'll call you up and let you know.
If you're on the standard variable rate with your current lender then give Pete or Gary a call NOW on 01424 205 373 -ref propertyhawk for No Broker Fee.
No comments:
Post a Comment