This change will be reflected for new customers and intermediaries creating a Key Facts Illustration from 18th July 2012 and will be effective from 1st August 2012 for existing customers.
In a note sent to brokers, seen by Mortgage Solutions, the lender said: “Recent economic conditions have increased the cost of financing our mortgages. Therefore, unfortunately we are unable to maintain our SVR at its current level any longer.”
Other lenders who have raised their SVR include Halifax, from 3.49% to 3.99% on 1 May, affecting 850,000 borrowers.
The Co-operative Bank pushed its SVR up by 0.5% to 4.74% on 1 May, impacting 54,000 borrowers. Clydesdale and Yorkshire Bank increased its SVR by 0.36% to 4.95%, affecting 30,000 borrowers in May, while the Bank of Ireland’s SVR rose to 4.49% on 1 June, affecting 100,000 borrowers.
Meanwhile, RBS increased interest rates on its offset products by 0.25% to 4.00% on 1 March, while rates on its One Account product range also rose by 0.25% to 4.00% on 1 May, affecting around 200,000 customers.
