Abacus Daily Debt News

First direct offers ‘cheapest’ SVR mortgages

Customers who have standard variable rate (SVR) mortgages from first direct paid the least interest during 2008, new figures have revealed.

According to data collected by Defaqto, borrowers who took out a £100,000 interest-only mortgage with the lender paid £5,918.16 over the last 12 months - £1,468.42 less than the most expensive deal, which came from Northern Rock.

Direct Line and HSBC also provided good deals for their customers, offering SVR mortgages which charged £6,180.14 and £6,322.27 in interest respectively.

Principal consultant of banking at Defaqto David Black explained that SVR mortgages have taken on "a much greater significance than in previous years" as a result of the economic downturn.

Customers who are looking to improve their debt management by switching their mortgage may wish to look into SVR offerings from first direct following publication of the data.

Leeds Building Society - which charges SVR customers £7,085.34 in interest - recently launched a range of new mortgage options for customers.

By Tom Musk