Trouble ahead with SVRs
Some 850,000 borrowers will see their mortgage costs increase as the rate rises from 3.5 per cent to 3.99 per cent from 1 May, due to the “significantly higher” costs of funding a mortgage in the current economic climate.
The average balance of the customers affected is £67,500, meaning payments would increase by nearly £16.40 a month to £498.95 on a capital repayment mortgage with 15 years remaining. This equates to nearly £200 extra a year. Someone with a balance of £100,000 would pay £24.30 extra, the equivalent of nearly £300 more per year.
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Hide AdThe move comes after RBS-Natwest on Saturday confirmed it is pushing up rates on two of its products – the Offset and the One Account – by 0.25 per cent, taking them to a rate of 4 per cent, affecting around 200,000 customers.