The current low level of interest on standard variable rate (SVR) mortgages offers an incentive for homeowners to remortgage their properties, it has been claimed.
As the Bank of England's base rate currently stands at 0.5 per cent and SVR deals are normally charge at two per cent above the bank's rate, many people are seeing their monthly payments fall.
"Some people are coming off deal rates of 4.5 per cent and reverting to an SVR of 2.5 [per cent]. Bargain," comments a spokesman for Moneyfacts.co.uk
He adds that this offers an "incentive" to go out and remortgage as SVRs are offering "good reasonable deals".
"Mortgage rates can't go any lower than they are at the moment but the level that they are is good value," the representative concludes.
The Bank cut its base rate to an all-time low of 0.5 per cent at March's Monetary Policy Committee meeting, with Moneyfacts.co.uk research highlighting that only 12.1 per cent of lenders planned to pass on the cut.
Low SVR rates offer an "incentive" to remortgage
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Low SVR rates offer an "incentive" to remortgage
Tue, 17 Mar 2009
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