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.