Looking at the best-buy variable mortgage rates, in 2006 these have outperformed the base rate rises, increasing on average by only 0.21 per cent, which just goes to prove that the mortgage market remains incredibly competitive.
However on the flip side to sustain such competitive rates we witnessed a series of increases to product/application/lending fees in the last 12 months.
But for those consumers who are paying the lenders standard variable rate, an already expensive rate has became even more costly 2006, with the average SVR rate increasing by 0.51 per cent.
And with 37 per cent of all mainstream mortgage lenders products using the SVR as an underlying rate, this 0.51 per cent increase could affect many more consumers, not just those sitting on a revert to rate.
Lisa taylor, analyst at Moneyfacts.co.uk, said: “The clear message is, check your interest rates to make sure you are getting the best deal, as not all banks and building societies treat they customers in the same way!”
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