SVR increase shows why they are called variable rate deals

1 February 2010

Some comments posted on Mortgage Strategy Online on Nationwide’s SVR suggest not many readers understand the building society model.

The base rate is at an all-time low and societies are having to lend at a rate of 2.5% but pay up to 5% for their funding. The clue is in the name of these deals - variable rate mortgages.

NAME AND ADDRESS SUPPLIED

If you enjoyed this article, sign up here to receive daily email updates from Mortgage Strategy and Follow @mortgagestrat