First time buyers boosted - but SVRs rise

SVRs inch up

Previously, there has been little or no motivation for people to remortgage," says Moneyfacts spokesperson Darren Cook. "But as standard variable rates continue to rise, many will be forced to find a better deal elsewhere and lenders may now be wise to this."

Earlier this week Norwich and Peterborough building society said they would be hiking their standard variable rate (SVR) from 4.85% to 5.35%. This will affect almost 6,000 customers.

Other small building societies have also been upping rates, like Kent Reliance and Cambridge. It's also emerged that Halifax is now refusing to allow borrowers to stick to their current SVR if they move house.

Fairer deal for all

Part of the move by lenders to up rates is to give savers a fairer deal – especially with Bank of England base rates so low. For example, the Norwich and Peterborough building society has almost 400,000 savers but just 53,000 mortgage customers.

Meanwhile better mortgage deals continue to arrive if you shop around. Santander has just introduced a two-year tracker at 2.49% for loans up to 70% loan-to-value. And the Leeds has introduced a two-year fixed at 3.45% for those with at least 40% equity in their properties.


Links (opens new window)

Mortgage boost for first timers - BBC
Santander latest tracker deals
New deals from the Leeds BS - Mortgages.co.uk
Better deals for first timers - Metro