Tracks the standard variable mortgage rate of high-street mortgage providers.
The standard variable mortgage rate is lender specific, some lenders base it on the Bank of England base rate, others use the LIBOR (London Intrabank O? Rate), other use a combination or other factors. It is up to the lenders themselves as to how they determine their own standard variable mortgage rate. There are no fixed rules over how a lender's standard variable rate is determined.
This hack attempts to monitor when the standard variable mortgage rate changes, how fast moving banks are to increases and decreases in the main base rates. And essentially to determine which lenders offer the best standard variable rate.
The standard variable rate is the interest rate on a mortgage once the introductory offer period has expired right up until the end of the mortgage. Considering the current financial crisis, the introductory offers of lenders leave a lot to be desired, to such an extent that accepting the standard variable rate is a feasible and sometimes rational option.