Standard Variable Rate - has anyone switched on to this?

[maggiethecat]

With the falling interest rates we are considering paying penalty (our fixed rate expires in Oct) and switching on to the SVR - has anyone done this/considered doing it?

We are on the SVR for a property that we own that is let out. When we said we were moving the mortageg our lender offered us the SVR rather than the buy to let rate...this was a very good deal for us, because all the buy to let rates are much higher.

Most of the advice that I have read is to avoid moving if you have to pay a penalty; I take it you have done the financial calculations and you think you will be better off even taking the penalty into account?

My fixed will expire in May but my mortgage provider's standard variable is nowhere near as low as you might expect it to be now.

just called my lender, C&G, and they say I cannot switch to the SVR. We've done calculations of course, and we would have to have the benefit of the current svr for about 7 months before breaking even, and then to start making saving. Problem is, it's not like remortgaging on to another fixed deal because with the svr there is no certainty of what the rate is going to be and for how long.

Notyummy, do you mind saying who your lender is?

First Active

I assume they are owned by someone else, but not sure who tbh.

Thanks, will start making some enquiries.

Check out the LTV too if you've less than 10% equity you're limited.