From This is Money:
Most will list alternative fixes, trackers or discount deals for loyal customers.
But an examination of the market reveals that many borrowers will be better off tearing up the letters and switching to their lender’s standard variable rate instead.
– Has your SVR been cut?
This decision is likely to make even more sense as borrowers are unlikely to be charged a fee to move on to their lender’s standard rate. By contrast, signing up for a new fix or special rate deal such as a tracker or discount can trigger fees of several hundred pounds.
Ironically, it is the most generous lenders with the lowest standard rates who most need to distract borrowers from them at remortgage time.
C&G, for example, is keen to promote its latest range of fixed-rate deals, priced at between 4.19 and 6.69%, rather than its super-low standard variable rate of 2.5%.
Halifax hope its remortgage customers look at its fixes of between 4.39 and 6.19% rather than its standard rate of 3.5%.
Royal Bank o…
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