On Christmas Eve, I gave borrowers with lenders such as Accord and Marsden Building Society, the unwelcome news that their lender had, or was just about to increase their standard variable rate (svr), and promised to keep you updated in the event of other lenders following suit.
You’ve probably guessed what’s coming, but here it is anyway….other lenders are following suit. Last week Skipton announced that from 1st March, their svr is to increase by a whopping 1.45% to 4.95%. Not only that, but the move is only made possible as they are “temporarily” ditching the guarantee that their svr will be no more than 3% above bank rate.
Those borrows whose mortgage terms included the SVR ceiling, will be given a 90 day window in which to redeem their mortgage free of charge “if they are concerned about the rise”.
Unfortunately, it’s not just Skipton borrowers who will be having their new year spoilt, as we’ve just learned that more lenders are joining in.
Ecology Building Society increased their SVR by 0.25% on 1st January to 4.9%, and today Nationwide announced that its two specialist lending arms, The Mortgage Works (TMW), and UCB are set to increase by as much as 0.5%.
Nationwide has already moved to close its ultra competitive Base Mortgage Rate of 2.5% to new borrowers, by introducing a 3.99% Standard Mortgage Rate for new customers from April 2009. The higher rate also applies to existing customers wishing to take a new deal, once their existing scheme comes to an end.
If you’re safe but are worried by the trend, try or our Rate Change Calculator, to see how an increase would affect your repayments.