Lenders deny SVR mortgage holiday reversion rumours
Lenders have moved to deny claims that borrowers would be shifted onto Standard Variable Rates during COVID-19 mortgage holidays.
Mortgage Introducer has contacted numerous lenders after claims emerged about the SVR switch.
Both Barclays and Santander clarified that mortgage payments will continue to be based on the existing rate.
Barclays said that the only time a mortgage account would revert onto its SVR is if the fixed rate matures during the mortgage payment holiday period.
Similarly, Santander has said that once a customer exceeds the term of their payment holiday they will revert back onto their previously agreed mortgage rate.
Furthermore, Barclays has updated its overdraft rate as of 22 March, which is noted at 35%.
Santander has said that as of 6 April, its overdraft rate will be listed at 39.9%.
However, it will offer a Choice account, which has a lower interest rate of 29.9% capped at £20 per month, for a £10 monthly fee, meaning a customer will pay a maximum of £30 per month.
Mortgage Introducer has contacted numerous other lenders but at the time of publication was still awaiting a response.
We’ll update this page as more becomes available.