According to consumer watchdog Which?, around 70% of borrowers are concerned about an increase in interest rates, while 14% admitted they are already struggling with repayments.
From today, Halifax’s SVR rises from 3.49 to 3.99%, affecting 850,000 borrowers. The Co-operative Bank has pushed its SVR up by 0.5% to 4.74%, impacting 54,000 borrowers.
Clydesdale and Yorkshire Bank have increased SVR by 0.36% to 4.95%, affecting 30,000 borrowers.
Other SVR hikes on the way include Bank of Ireland, which is to rise to 4.49% on 1 June, affecting 100,000 borrowers.
Meanwhile, RBS increased interest rates on its offset products by 0.25% on 1 March, while rates on its One Account product range will rise by 0.25% from 1 May. Changes are set to affect around 200,000 customers.
Three quarters of homeowners told Which? they would be affected if their repayments increased by £50 a month, while 41% said they would need to cut back on regular spending.
Around 20% would need to reduce savings and 11% would not have enough for essentials.
Which? said an increase of £100 a month would see 20% of mortgage-holders not having enough for daily essentials like food and 11% being unable to pay their mortgage.
Which? chief executive, Peter Vicary-Smith said: “Our advice to anyone struggling with their mortgage repayments is speak to your lender straight away. It is encouraging that a third of people we spoke to had approached their lender but worryingly in one in five cases, they said their lenders offered no help at all. This is just not good enough and we want to see banks do more to help their customers who are struggling.
“These SVR rises are the consequence of the lack of competition in the market and the failure of the government to take action to promote competition. This is why the new financial regulator, the Financial Conduct Authority (FCA) needs to be a watchdog not a lapdog. It must stand up for consumers and stand up to the banks.”
