Santander increases its Standard Variable Rate (SVR)

Santander which many people will still remember as Abbey has increased its Standard Variable Rate by 0.50% to 4.74% starting from 1st October 2012.

The bank blamed the SVR move on higher banking costs and said that “most notably the fact that for the last three years the amount it costs us to provide mortgages and the rates we offer our savings customers have been increasing, despite the base rate remaining static”.

The rise applies to Santander mortgage customers including those acquired under the Abbey for Intermediaries brand.

Last time a lender “broke ranks” and increased its SVR other lenders soon followed suit so watch this space.