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Look for a good SVR on your cheap mortgage

Date: Tue, 23 Aug 2005

Homebuyers are being urged to make sure their cheap mortgage has an attractive long-term standard variable rate (SVR).

Price comparison website moneysupermarket.com estimates that UK borrowers could save over £12 billion by remortgaging to a loan with a more competitive SVR, once the initial tempting rate expires.

The study shows that nearly 50 per cent of lenders offer loans with a SVR of 6.5 per cent to seven per cent – at least two per cent over the Bank of England's current base rate.

"Lenders rely on borrower apathy, enticing them in with competitive introductory deals and relying on them to stay put once the deal is over," said Louise Cuming, head of mortgages at moneysupermarket.com.

"I urge the quarter of borrowers who are paying the SVR to consider remortgaging to one of hundreds of competitive deals on the wider market," she added.


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