Consumers ‘increasingly opting for SVR deals’

More consumers have taken up the chance to go on standard variable rate (SVR) mortgages as they seek to ride out the recession, new figures have shown.

Data from finance site found that 27 per cent of consumers are currently on their lender’s SVR, compared with 23 per cent earlier this year.

Such consumers have been doing so to take advantage of record low interest rates.

A quarter of homeowners – including 36 per cent of those aged 55 or over – said they have no plans to move away from their lender’s SVR.

Chief executive of the site David Elms said: “While in the past it could be financially crippling to remain on your lender’s standard variable rate after your mortgage deal had ended, now it is becoming a more popular option.”

Many people are protecting themselves against the risk of repossession by taking on interest-only deals, UK Insolvency Helpline money advice coordinator Ian Boden-Smyth has stated.

However, he warned, these consumers could still lose their homes if interest rates increase and push up their payments.

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