Remortgaging cheaper than most SVR deals

The majority of borrowers sitting on SVRs would be better off remortgaging, according to research from

Following the recent hikes to SVRs from lenders such as Skipton Building Society and Nationwide’s The Mortgage Works and UCB Home Loans, says that that slowing remortgage market has staged a comeback.

And the comparison website says that even when arrangement fees are factored in, the cheapest two-year fixed rate deal is still less expensive than the majority of SVRs. says that the cheapest two-year fixed rate mortgage is First Direct’s 3.29% deal available up to 75% LTV with a £998 arrangement fee.

Taking into account the fee, the website calculates the actual cost of this mortgage would be 3.8% after two years, which is only beaten by 13 out of 85 current SVRs.

Hannah-Mercedes Skenfield, mortgages channel manager at, says: “The prospect of an arrangement fee can be off-putting but our analysis shows that even when taking the fee into consideration and provided borrowers have at least 25% equity in their properties, the vast majority of SVR deals do not compete with the top fixed rates.”

For trackers, the best deal according to is Alliance & Leicester’s two-year tracker at 2.49%, available up to 70% LTV and with a £995 fee.

Once the fee has been factored in, the actual cost of the mortgage equates to 3.07%, beating all but seven SVRs currently available.