Lenders hike their standard variable rates

by Aaron Strutt

May 04 2012

More than one million homeowners had their mortgage repayments increased this week as some of the biggest lenders raised their standard variable rates.

Five banks hiked their SVR including: Halifax, Bank of Ireland, Clydesdale Bank, Yorkshire Bank, Royal Bank of Scotland and NatWest.

Approximately 850,000 Halifax customers will be affected by the 0.49% SVR increase.

Both Clydesdale and Yorkshire banks raised their SVR by 0.36% to 4.95%, affecting 30,000 borrowers.  Bank of Ireland will increase their rate to 4.49% on 1 June affecting 100,000 borrowers.

The rate increases will add approximately £300 million a year to mortgage bills according to Which? the consumer group.

Aaron Strutt, a broker at Trinity Financial, told The Times: "There is a real danger other lenders will increase rates sooner rather than later as it becomes more expensive for banks and building societies to raise wholesale finance."

Please find a list of a few of the main lenders SVR's:

May 4, 2012