6
Jan
Lenders 'are actively encouraging borrowers to seek new deals with
SVRs'
Lenders are attempting to encourage borrowers to find new mortgage
deals by increasing the levels of their standard variable rate
(SVR) products, an industry expert has claimed.
Darren Cook, a spokesperson for Moneyfacts.co.uk, commented that
financial institutions in the UK have put rates on SVR deals up in
an attempt to get borrowers on to fixed-rate deals.
However, he added that many homeowners will be reluctant to shop
around while the base rate of interest remains low.
"There is little or no incentive for borrowers, particularly those
with little or no equity, to find a new deal when in all likelihood
they will have to pay a higher rate," Mr Cook explained.
Moneyfacts.co.uk reported that eight lenders have now increased
their SVRs and noted that others are likely to follow suit.
The Bank of England's Monetary Policy Committee is due to meet on
January 6th and 7th to discuss interest rates and its policy of
quantitative easing.
It lowered the base rate of interest to 0.5 per cent in April 2009
and has maintained them at this level for the past nine
months.