Qualified advisers answering your
Financial Questions
call 0800 092 1245

Standard variable rate mortgage agreements are potential ticking timebombs

As more and more mortgage promotions hit the market it is becoming ever more apparent that only those with perfect credit ratings and credit histories will have access to the better rates. Those who have been rejected for the lower promotional rates are likely to be moved towards a standard variable rate mortgage agreement but with base rates at just 0.5% there is little scope for anything but a significant increase in the longer term.

So those investors who are looking to acquire property in the current market could well be acquiring a potential ticking timebomb for the future as and when standard variable rates begin to rise. When you consider interest rates were around 5% before the recession began we could see a significant increase in the standard variable rate mortgage which will place more pressure on household budgets and potentially push more people towards financial distress. It will also reduce any significant short to medium-term growth in the UK property market and could slow a return to the "boom times".

There have been suspicions for some time that mortgage lenders in the UK are happy to grab the headlines with low mortgage rates when upon further investigation many of these agreements require significant deposits.

Share this..

Related stories

Financial Guides

Financial Calculators

Our useful calculators can help you get your finances in order:

Latest News


Helpful new tax year facts that could affect you and your money

Blog | Seven helpful new 2016/2017 tax year facts that could affect you and your money. Our recent online blog shares a brief outline on how to stay up to date.

Read more

Useful Links

Popular Searches

Please Enter More Details

Enter More Details