You are here: Home - News -

Clydesdale and Yorkshire Banks increase SVR

by:
  • 09/03/2012
  • 0
Clydesdale and Yorkshire Banks increase SVR
Clydesdale and Yorkshire Banks have become the latest lenders to increase their standard variable rates for residential mortgage customers, affecting 30,000 existing customers.

With effect from 1 May, the sister banks’ SVR will rise from 4.59% to 4.95%.

They said that the number of borrowers affected amounted to less than a third of its customers, with average repayments increasing by less than £30 a month.

The banks said this was the first increase in their SVR for more than three years and attributed the move to the increased cost of mortgage funding.

Until 31 July, both Clydesdale and Yorkshire will waive their standard mortgage exit administration fee for customers impacted by the increase who wish to remortgage to another provider.

Steve Reid, retail director at the banks, said: “While our SVR will continue to remain competitively below a number of other UK mortgage providers, the market and costs associated with providing mortgages have changed significantly in the three years since the rate last moved.

“We don’t take such decisions lightly and fully appreciate the impact this will have on some customers, but you only have to look at the narrow gap between longer-term savings rates and mortgage borrowing rates to see how things have changed.

“For instance, our five-year savings account is just 0.7% below the new SVR. With significantly more savers than borrowers, it is important that we balance the needs of all of our customers.

“This change will help enable us to continue to support savers and maintain the competitiveness of our deposit rates. Our commitment to the mortgage market, including strong support for first-time buyers as one of only a handful of lenders that have consistently offered 95% LTV mortgages, remains as strong as ever.”

There are 0 Comment(s)

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.

Profiles

Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.

Marketwatch

Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.

Poll

Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.
Read previous post:
/IMG/587/132587/skipton-building-society-logo.gif
Skipton increases rates on BTL range by up to 0.30%

Skipton Building Society has increased interest rates on its buy-to-let range of two-, three-year fixed rate deals by up to...

Close