Chelsea Building Society cuts SVR by 0.14%

Chelsea Building Society has cut its standard variable rate by 0.14 per cent.

As of 15 December, customers on the direct-only lender’s SVR now pay 5.65 per cent, as opposed to 5.79 per cent before. 

While Chelsea’s SVR has been cut, the SVRs of Yorkshire Building Society’s other brands remain the same.

Presently, the SVRs of Yorkshire BS, Barnsley Building Society and Norwich & Peterborough are 4.99 per cent and Accord Mortgages’ SVR is 5.99 per cent.

A spokeswoman says: “Mortgage rates are calculated based on a number of factors, including the credit risk of the book and the cost of funding for mortgages.

“The composition of these factors has changed in recent months, meaning we are in a position to reduce the Chelsea SVR. All SVRs are reviewed regularly as part of our commitment to long-term value products.”

Chelsea’s decision to cut its SVR comes weeks after the FCA warned lenders it may look to crack down on clauses within mortgage contracts which allow lenders to push through rate hikes despite base rate remaining at a record low.