Chelsea lowers its standard varibale rate

by Aaron Strutt

Dec 19 2013

Chelsea Building Society has reduced its standard variable rate (SVR) by 0.14%. In a highly unusual move the lender, part of the wider Yorkshire Building Society group, has reduced the SVR from 5.79% to 5.65%.

The change does not affect fellow brands Barnsley Building Society, Norwich & Peterborough and Yorkshire Building Society. The SVR at those three brands remains at 4.99%. Accord Mortgage still remains the same at 5.99%. 

Aaron Strutt, product manager at Trinity Financial, says: “Chelsea Building Society has had one of the highest standard variable rates in the market and it has not changed for around five years. It is still one of the higher rates and it is unlikely it will be another five year before the lender adjusts it again.

“The average standard variable rate is around 4.84% and there are still millions of borrowers sitting on expensive SVR's unnecessarily. There are around 30 lenders offering mortgages below 2% at the moment and many of them offer remortgage incentives.”

December 19, 2013