Lenders’ standard variable rates are beginning to look more competitive than some of their other products as they try to limit levels of new business.
Nationwide has two tracker deals which are priced above its SVR. Its two-year tracker for a 95 per cent loan to value is priced at 7 per cent for purchases and 7.1 per cent for remortgages. Its SVR is 6.74 per cent.
John Charcol senior technical manager Ray Boulger says: “To have products priced above SVR is untenable for anything other than a short period of time. Nationwide seems to be doing whatever it can to avoid doing new business.”
A Nationwide spokeswoman says: “We recognise that the pricing of a small number of products may mean our SVR could prove the cheaper option. However, we feel it is important to maintain choice by offering a wide range of products.”
Skipton Building Society has recently added a £799 arrangement fee to its 6.7 per cent SVR for new customers.
Staffordshire Building Society has emailed brokers to say it will no longer accept applications on its SVR, which is competitively priced at 5.99 per cent.