Investec has announced that it has removed the standard variable rate on its existing fixed rate products.
The lender says that those borrowing on its current two-, three-, four-, five-, and 10-year fixed rate product ranges will revert to the Investec Bank Base Rate tracker instead of an SVR in the event that they do not switch to another mortgage option.
The IBBR equates to the Bank of England’s base rate – currently 0.75 per cent – plus a margin worked out via the LTV of the mortgage product.
This, according to Investec business development manager Peter Izard, “will always be the best tracker rate available for new clients at that time – the best possible rate.”
He adds that in the event of a client executing a capital reduction in the course of their fixed term, the new reversion rate will take the new LTV into account.
Izard says that approaching mortgages in this way offers a far more transparent setup for borrowers, because in the BoE base rate, they always have something tangible to make decisions on. “However,” he adds, “we would always encourage clients to engage with us as a fixed term ends.”