BoI to raise SVR from 2.99% to 4.49%

The Bank of Ireland has announced it will increase its standard variable rate (SVR) by 1.50% to 4.49%, hitting around 100,000 customers.

The increase will take place over two stages, with the bank initially raising its SVR by 1%, from 2.99% to 3.99%, from June 2012.

The SVR will then increase by a further 0.5%, from 3.99% to 4.49%, from September 2012.

This marks the first increase that Bank of Ireland has made to its UK residential SVR since August 2007.

The bank blamed the move on the increased cost of funding mortgages, the same factor attributed to Halifax’s recent announcement it was increasing its SVR from 3.50% to 3.99% on 1 May.

Moneyfacts data shows that currently, the lenders with the highest SVRs include Yorkshire Building Society at 4.99%, Leeds Building Society at 5.69% and Chelsea Building Society at 5.79%.