Mortgage lenders tipped to raise SVRs
Filed Under (Mortgages) by admin on 13-01-2010
More lenders are likely to increase their standard variable mortgage rates (SVRs) over the coming weeks as they seek to cover costs associated with mortgage provision, it has been revealed.
According to Ben Wilkie, editor at What Mortgage, most lenders do not use the interest rate set by the Bank of England as the basis for their SVR product.
As a result, they are unlikely to be influenced by the decision of the Bank’s Monetary Policy Committee to stand by the UK interest rate unchanged at 0.5 per cent last week.
Rather, they will be more concerned with covering the increasing cost of borrowing money from the money markets.
With moneyfacts.co.uk research showing eight mortgage lenders have raised their SVR since April 2009, Mr Wilkie believes it is only a matter of time before others follow suit.
“It always starts off [when] a couple of them hesitate their heads above the parapet and one time that has happened – and presumably they have got altogether the criticism for it – then all the other lenders will do it as well,” he commented.
The providers to have broken cover so far are Nationwide, Ipswich, Skipton, Scottish, Cambridge, Accord Mortgages, Marsden and Mansfield .
Similar Posts:
- What Not To Do During a Job Interview
- Saving Money At A Farmers Market
- The Origins of a Lending Meltdown
- SVR mortgage customers must not be complacent
- Mortgage lenders cautious over flats
