The number of discounted rate mortgage products available has fallen by an astonishing 72%.
David Black, Banking Specialist at Defaqto said:
“There are significant differences in the Standard Variable Rates (SVR) being charged by lenders and given that discounted mortgages tend to be linked to the SVR this is a key reason for their decline in popularity. Lenders with competitive SVRs have little incentive to offer discounted mortgages because profit margins on their fixed and base rate tracker mortgages are better.”
Current SVR facts:
- Average SVR is currently 4.77%
- Lowest SVR is 2.50%
- Highest SVR (from a mainstream lender) is 6.08%.
