Why are the 300,000 SVR holders not taking to the streets?

The lowest rates at 3.5% tend to be 1 year fixed, and are available in several instances, the lowest SVR in Irish market are c 3.9% at AIB/ EBS with Ulster next best at 4.3%. Low LTV rates are available below this level e.g KBC 3.55%, others 3.60% etc. Teaser Rates in the UK are due to intense competition for New business customers and are typically focussed on 2/3 year term which then reverts to SVR, the average UK SVR is 4.85%. Sure customers can switch, but costs and administration tend to desuade many from doing so. Those who don't continually move bank end up with higher rate than the incentivised intro rate, which are offered at below cost to attract new customers in the hope banks will recoup losses when the customer converts to higher SVR.
 
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