Lenders may 'continue to withdraw SVRs'
Wednesday, 12th November 2008

A number of lenders may add to the trend of withdrawing their standard variable rate (SVR) mortgages, it has been said.

Michelle Slade of Moneyfacts said that over the last few months, SVR products have gradually stopped being offered by high street banks and building societies, with recent developments in the market possibly going to add to this.

She continued: "Now as the base rate falls, we may see more lenders taking this step to prevent them from receiving frequent applications from borrowers who may now see SVR products as an attractive option."

Ms Slade added that with Libor now standing at 1.4 per cent above base, the full 1.5 per cent base rate cut will not be passed on fully from sellers to buyers any time soon.

Last week, Moneyfacts congratulated both Lloyds TSB and Cheltenham & Gloucester for their decision to cut their SVR deals in line with the Bank of England's announcement.