Virgin Money and Clydesdale Bank increase residential standard variable rates to 9.24%
Virgin Money and Clydesdale Bank have announced further increases to their already high standard variable rates. Both lenders' automatic reversion rates will now start from 9.24%.
Most fixed and tracker mortgages revert to standard variable rates when they finish if borrowers do not action a 'product transfer' or remortgage to another lender.
Many borrowers find it difficult to avoid their lender's reversion rates if they miss repayments, reach the end of the mortgage term, let out their property or need a no early repayment charge product.
Banks and building societies have increased their standard variable rates since the Bank of England started to hike the base rate. This has led many borrowers stuck on these reversion rates to pay significantly more for their mortgages.
Figures produced by Uswitch show the average standard variable rate is 8.45% across the market reducing to 7.49% across the big six lenders including Nationwide, Santander, HSBC, Halifax, Barclays Bank, NatWest, and Lloyds Bank.
Aaron Strutt, product director at Trinty Financial, says: "It is important borrowers act to try and avoid the lender's standard variable rates. If the Bank of England base rate increases again over the coming months they will get even more expensive. According to figures from UK Finance, there are currently around 773,000 borrowers on an SVR mortgage."
When will the Virgin and Clydesdale standard variable rate hikes come in?
Virgin Money customers who are affected by these changes will be contacted to let them know their rate and monthly repayment will change on 1 September 2023.
Clydesdale Bank customers who are affected by these changes will be contacted to let them know their new rate and the monthly payment will become effective from their next payment following 3 August 2023.
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On 3 August 2023, the Virgin Money standard variable rates change: · Standard Variable Rate will move to 9.24%. · Buy to Let Variable Rate will move to 9.44%. |
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On 3 August 2023, the Clydesdale Bank standard variable rates change: · Standard Variable Rate will move to 9.24%. · Offset Variable Rate will move to 9.45%. · Buy to Let Variable Rate, Offset Variable Investment Housing Loan Rate will move to 9.74%. |
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The information contained within was correct at the time of publication but is subject to change.
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