ING Direct has become the latest lender to increase its Standard Variable Rate (SVR). Announced this week, its SVR is increasing by 0.49% from 3.50% to 3.99% - the change will come into effect from 18th July for new customers and 1st August for existing customers.
Like a number of other of lenders who’ve raised their own SVR in recent months, ING blamed the rise on the increased cost of financing their mortgages due to recent adverse economic conditions.
It’s unclear at the moment how many borrowers are affected by this rate rise, but it will add around £40 a month to monthly repayments on a typical £150,000 repayment mortgage.
ING’s move follows a spate of other mortgage rate rises from major lenders such as Halifax, Bank of Ireland, Yorkshire Bank and Co-operative Bank. It’s estimated that around 1.2 million borrowers have been affected by these rate rises.
If you’re with ING Direct and are either paying their SVR or have a variable rate mortgage that is linked to it then you can expect your interest rate and your monthly payments to rise from August. To see how this or any rate rise would affect the cost of your mortgage, try our rate change calculator.
If you have a fixed rate mortgage then your rate won’t be affected for as long as you’re paying the fixed rate. If, once you’re fixed rate deal finishes, you’re due to move on to the SVR, then be prepared to pay the higher rate then.
After we saw four lenders announce in March that they were raising their SVR, we anticipated other lenders would do the same and we think there are still more to come.
If you’re on variable rate mortgage then you should find out how an interest rate rise would affect your own payments and your finances. And if you’ve seen your rate already go up (or think it is about to), you can also use our handy 1 minute mortgage check to see if you could switch your current mortgage and save money – remember to use the new Standard Variable Rate that you will move onto in the calculator.