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Homeowner loan borrowers 'moving onto SVRs'
Many borrowers are turning to their lenders' standard variable rate (SVR), a leading finance advice website has claimed.
According to Moneyfacts, as the base rate has been at 0.50 per cent for the past ten months and no real incentives to move onto new deals exist, people are choosing to stick with SVRs.
However, the website has warned that while some borrowers have benefitted from the cut being passed on, others have not been so lucky.
Michelle Slade, spokesperson for Moneyfacts.co.uk, said: "Many lenders' SVRs have become disjointed from base rate, with only a fraction of the cuts having been passed on.
"Many smaller building societies have passed on a fraction of the base rate cuts in a bid to deter borrowers from languishing on the SVR."
Earlier this week, Paula John, editor of independent finance website Money.co.uk, said lenders are currently increasing the number of competitive deals available in the mortgage market.