Switch from SVRs for better rates
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Switch from SVRs for better rates
Navigating the labyrinth of financial acronyms can leave even the savviest money managers with a headache. But if you are a mortgage holder, it might be time to become familiar with one important abbreviation: SVR or Standard Variable Rate.
Ups and downs
There’s a good chance you’ll be switched to an SVR when your existing mortgage deal comes to an end. Whether you currently have a tracker, fixed rate or discounted mortgage, being moved to an SVR might mean you end up paying over the odds, perhaps without even realising.
This is because SVRs rarely offer the most competitive rates. The SVR interest rate is usually linked to a percentage above the bank’s base rate, which means it can rise and fall. As a result, you’ll be more vulnerable to potential interest rate hikes in the future.
Switch and save
In a complex environment, getting clear advice can really pay. If you’re locked into a mortgage deal with exit charges, you don’t have to wait until it ends: we can help you find a deal three or six months before your lock-in period finishes. After two Bank of England base rate cuts last year, mortgage rates have remained at record lows, so now could be the perfect time to see if you can save money by switching to a better rate.
It is important to take professional advice before making any decision relating to your personal finances. Information within this document is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed. It does not provide individual tailored investment advice and is for guidance only. Some rules may vary in different parts of the UK. We cannot assume legal liability for any errors or omissions it might contain. Levels and bases of, and reliefs from, taxation are those currently applying or proposed and are subject to change; their value depends on the individual circumstances of the investor. No part of this document may be reproduced in any manner without prior permission.
The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated. If you withdraw from an investment in the early years, you may not get back the full amount you invested. Changes in the rates of exchange may have an adverse effect on the value or price of an investment in sterling terms if it is denominated in a foreign currency.
Information is based on our understanding of taxation legislation and regulations. Any levels and bases of, and reliefs from, taxation are subject to change.
Tax treatment is based on individual circumstances and may be subject to change in the future.
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