NI homeowners get 'breathing space' due to SVR reduction

Lenders have reduced their standard variable rates (SVR) thereby giving some "breathing space" to homeowners in Northern Ireland (NI) and the rest of the UK, it has been argued.

According to Bilal Afzal, an independent mortgage adviser at Surrey Independent Financial Services, people coming out of their initial promotional rates are benefitting from lower SVRs.

The reduced rates mean that the individuals now have to part with even less money, but this is, however, limited to only those with more than 25 per cent equity, he stated.

Solicitors in Belfast may be interested to know that individuals unable to meet this requirement would not "either be entertained by lenders or qualify for those rates", according to Mr Afzal.

Lenders have reduced their SVRs over the last few months as a result of interest rate cuts by the Bank of England, which has lowered the base rate to a historic low of one per cent.

This is from a high of five per cent in October last year.
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