Thanks again Ian :)

I'll contact ME for clarification and post back if they say anything of general interest.

When analysing rates from the statement I was careful to pick ones a few months after BBR rate changes to be sure ME had changed their rate; with a month by month listing this was easy.

Best

Charles

I see what you are saying Charles. I have looked at current products, which are very few and the reversion rates are basically tracker rates which follow the BBR. You would have to check the small print in the original offer as ME may well have changed their policy on reversionary rates. If the wording is that the rate is directly linked to actual movement of the BBR then there does seem to be a discrepancy? You may also consider the set time that ME uses to operate these rate fluctuations. Some lenders will follow 30 days after the announcement is made and some will change their rate the month after the month in which the rate change was announced.

Thanks completefinance :)

Understood. It would be interesting to know how Mortgage Express' SVR/BBR difference compares with other mortgage suppliers including recent trends.

It looks as if Mortgage Express are increasing the difference, based on figures for my mortgage. Could this be a way to increase costs for existing borrowers while a) not making any notifiable changes and b) offering competitive rates to new borowers?

I could not find Mortgage Express' SVR anywhere on their website but they do say "All our rates are linked to the Bank of England base rate" (http://www.mortgage-express.co.uk/customers/mxratestructure.asp?sid=1&ngid=200&iid=10000). That's not much help when you have a mortgage that is based on their SVR!

Best

Charles

Hi Charles....a lenders SVR is independent of the BBR. It may follow the movement up or down as a lot of them do but it is not compulsory.

Hello :)

Is the difference between Mortgage Express' Standard Variable Rate (SVR) and Bank of England base rate (BEBR) changing?

I compared historical BEBRs (from http://www.bankofengland.co.uk/mfsd/iadb/Repo.asp?Travel=NIxIRx) with the interest rate listed on an annual statement for an SVR - 0.76% mortgage.

In Sep 07 the statement rate was 6.49% implying an SVR of 7.25%. BEBR was 5.75% so SVR was BEBR + 1.50%.

In Feb 08 the statement rate was 6.24% implying an SVR of 7.00%. BEBR was 5.25% so SVR was BEBR + 1.75%.

SVR is now 7.14% (according to www.godirect.co.uk/mortgage-lenders/mortgage-express-mortgages.php) so SVR is BEBR + 2.14%.

Huh?! Is my analysis correct? Are Mortgage Express really progressively increasing the difference between their SVR and BEBR?

Best

Charles