CMC has highest SVR in the market at 12.5%
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Cheshire Mortgage Corporation has been highlighted as the lender with the highest SVR in the mortgage market at 12.5% - more than double the industry average of 4.79%.
Research from Largemortgageloans.com reveals that out of 62 lenders CMC, part of the Blemain Group, has the highest SVR while Direct Line comes in with the lowest at 2%.
GE Money Home Lending’s igroup charges the second highest SVR at 8.59%, with Lloyds Banking Group, Nationwide Building Society and Cheltenham & Gloucester Building Society having the joint second lowest SVRs at 2.5%.
CMC offers adverse residential mortgages, shared ownership deals and bridging finance.
One broker, who wishes to remain anonymous, says: “The adverse sector desperately needs more competition. Because CMC is one of very few lenders in the market it can charge a high SVR and borrowers can’t remortgage elsewhere.”
Nobody from Blemain was available for comment.
The research also shows that overall, the lenders with the highest SVRs are societies.
Last week Nationwide increased the SVR on residential and self-cert mortgages with The Mortgage Works and also raised the SVR for some UCB Home Loans customers.
But Paul Welch, managing director of Largemortgageloans.com says it’s good news for intermediaries that lenders are starting to increase their SVRs.
He says: “It’s a question of survival for brokers at the moment and if lenders are changing their SVRs at least it gives brokers a reasonable excuse to get in touch with their clients and see if they can get them a better deal.”
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