First-time buyers and new borrowers are not being offered the standard variable rate (SVR) deals by lenders. As the rates have started falling down to as low as 5%, many first time borrowers can only read about the new rates, and dream about buying a house. New applicants have been excluded from the SVR deals, which is increasingly disappointing as the rates are currently among the best on offer.
Many of the big lenders, including Lloyds TSB, Abbey, Royal Bank of Scotland and Halifax are not advertising the standard variable rate deals to newcomers. Their rates have plunged down to approximately 5% which is comparable to many of the flexible rates on the market. New borrowers are not even being shown these as options when applying for a loan. Standard variable rates have always been attractive to people who liked the flexibility of the deal which included not charging any extra fees. Now lenders have begun to put on arrangement fees and early redemption fees on the loans as well.
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