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Letsdance

Why Don't Lenders Just Increase Svr's

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This has always puzzled me when the rates came down some passed on , some partly passed on and some did nothing.

Now the swap rate is going up fixed rates and trackers are being pulled and increased but the saving grace to the MEW crowd is the fact that the SVR's are so low. The bank is not doing good business with people on 2.5%. More and more are ending up on SVR and can not get another deal.

Simple answer raise the SVR, one does it they will all follow suit.

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This has always puzzled me when the rates came down some passed on , some partly passed on and some did nothing.

Now the swap rate is going up fixed rates and trackers are being pulled and increased but the saving grace to the MEW crowd is the fact that the SVR's are so low. The bank is not doing good business with people on 2.5%. More and more are ending up on SVR and can not get another deal.

Simple answer raise the SVR, one does it they will all follow suit.

Some mortgage contracts, Lloyds for example, say that the SVR won't rise more than a certain percentage above base rate. That's why they aren't rising, and that's why you can't get a SVR mortgage any more.

Swap rates determine the cost of fixed rate mortgages, not variable rate mortgages.

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just a quick look at A+L SVR is 4.99%

nearly 10 times the BoE rate.

yuo get that if you are a good boy.

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just a quick look at A+L SVR is 4.99%

nearly 10 times the BoE rate.

yuo get that if you are a good boy.

But if you're an existing mortgage holder coming to the end of their current fix the SVR is 2.49%.

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Yes - I think these low SVRs are only for existing customers at the end of their deals. The risks of a recklessly low base rate should have been hedged in the swap market when the mortgages were taken on, so the losses are being borne elsewhere.

So am I correct in assuming that say Lloyds and a&l are legally obliged to keep their SVR's at or about 2.5%. It is strange as Yorkshire and Clydesdale bank SVR 4.5% even is you are an exisiting borrower coming off a deal. In the light of things 2% is some difference.

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But if you're an existing mortgage holder coming to the end of their current fix the SVR is 2.49%.

I believe the phrase 'fine tooth comb' is now applicable to those coming off fixed term deals. ;)

of course this would only affect people who have told porkies etc.

Also, what about those who have been made redundant ?

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I believe the phrase 'fine tooth comb' is now applicable to those coming off fixed term deals. ;)

of course this would only affect people who have told porkies etc.

Also, what about those who have been made redundant ?

It's a catch 22 I think, if they look too closely they could have to allocate more capital to cover the risk

of lending to someone with no equity or a higher LTV, at a time they are trying to increase their capital.

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But if you're an existing mortgage holder coming to the end of their current fix the SVR is 2.49%.

assuming the LTV, the record and computer valuation is in your favour.

the SVR was off the website. i have no idea what fixers are coming off at.

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assuming the LTV, the record and computer valuation is in your favour.

the SVR was off the website. i have no idea what fixers are coming off at.

BL you are a knowledgable chap, is this the cast below

So am I correct in assuming that say Lloyds and a&l are legally obliged to keep their SVR's at or about 2.5%. It is strange as Yorkshire and Clydesdale bank SVR 4.5% even is you are an exisiting borrower coming off a deal. In the light of things 2% is some difference.

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