MargeSimpson
Registered User
- Messages
- 187
GeneralZod said:Tracker (ECB +) good,
Standard Variable Rate (SVR) bad.
Is it that clear cut? Are standard variable people complete mugs now.
When the ECB rate was going down they didn't pass on all the drops (bad).
But on the way back up they might not pass on the full increase on the standard variable (good, if they do it).
ClubMan said:Unfortuantely with many standard variable rates the lenders passed on ECB increases in full and immediately but only passed on decreases in part and after delays. This is how they managed to increase their margins on standard variable rates by stealth over the years. It's not so much a case of SVR bad, tracker good but more a case of a good value (i.e. low margin) tracker being the bet bet for minimising overall interest charges over the lifetime of the loan for those who can put up mortgage repayments that fluctuate in line with the underlying ECB rate.
AKA said:But even if you go with the SVR won't you have to put up with repayments that fluctuate at the discretion of your lender?
AKA said:How are SVRs regulated?
AKA said:When you take the discounted rate for a year what type of rate are you offered afterwards? I've read in other posts of borrowers not being offered a tracker mortgage after the initial discounted period.
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