Standard Variable Rates Increase
Research has found that the hikes in the Standard Variable Rate (SVR) brought in by Halifax, Co-operative Bank, Yorkshire and Clydesdale banks today could cost borrowers £300m in extra mortgage repayments over the next year.
According to the independent consumer group Which?, around 70% of borrowers are concerned about an increase in interest rates, while 14% admitted they are already struggling with repayments.
From today, Halifax’s SVR rises from 3.49 to 3.99%, affecting 850,000 borrowers. The Co-operative Bank has pushed its SVR up by 0.5% to 4.74%, impacting 54,000 borrowers.
Clydesdale and Yorkshire Bank have also increased their SVR’s by 0.36% to 4.95%, affecting 30,000 borrowers.
Other SVR hikes on the way include Bank of Ireland, which is to rise to 4.49% on 1 June, affecting 100,000 borrowers.
For borrowers still sitting on the Standard Variable Rate now may be a good time to take independent advice on their mortgage.