News broke recently that the Halifax is raising its SVR (Standard Variable Mortgage Rate) from 3.5% to 3.99%.
This latest development from the UK’s biggest mortgage lender has proved discouraging for many borrowers. Halifax has attributed the increase to the greater cost of raising funds for mortgages from savers and the financial markets.
It comes in the wake of RBS increasing the rate on two of their mortgages from 3.75% to 4%. Such a rise from Halifax would add a further £24 a month for borrowers with £100,000 still remaining.
BBC Business correspondent Joe Lynam commented that ‘Halifax has written to customers advising them it is raising the cup or maximum rate it could charge on SVR which usually signals an imminent rate rise.’
He went on to say that ‘for those with an interest-only SVR it would mean a sharp 14% hike in monthly payments.’