View more on these topics

Higher SVRs could revive remortgages

While the Bank of England base rate remains unchanged from 0.5% – the rate at which it has been for three years – the same cannot be said of SVRs.

ROBERT-MCCOY.jpg

Although over the same time SVRs have mimicked the base rate, the two are not linked – a fact that some lenders are beginning to pay heed to.

Low SVRs have allowed home owners to save money on their mortgages, but with the result that many have lost this money on their savings.

While a higher SVR will be unpopular for those with mortgages, it will enable lenders to improve their liquidity position and so be better placed to launch products. This move could also kick-start the remortgage market as borrowers seek out more competitive rates.

With Halifax and Bank of Ireland having announced plans to hike their SVRs, from 3.5% to 3.99% and 2.99% to 4.49% respectively, it seems likely others will follow suit.

This is undeniably a great remortgage opportunity for brokers, as borrowers look to move deals to secure a reduced rate.

An SVR rise across the board is looking more and more likely so rather than focus on the negatives, let’s use this to breathe life into the remortgage market.

Recommended

Bob Young

Avoid past mistakes and B2L is a good bet

It is no secret that buy-to-let is showing strength at present and the latest data on rates from Moneyfacts.co.uk shows just how promising the picture is.

Stop letting targets get in the way of delivery

The positivity at RESI was pleasing to see, with lots of encouraging discussion about the private rented sector (PRS), the possibility (or hope) of stamp duty cuts on the way in the Autumn Statement and the general prospects of residential property in this post-Brexit vote world. However, that positivity was often tinged with some negativity […]

Newsletter

News and expert analysis straight to your inbox

Sign up