Rates going up in UK!

[AtW]

Halifax expected to raise standard variable rate

The UK's biggest mortgage lender, the Halifax, is expected to raise its standard variable mortgage rate (SVR) from 1 May.

The Halifax said the rise - from 3.5% to 3.99% - was due to the higher cost of raising funds for mortgages from both savers and the financial markets.

On Friday, RBS raised the rate on two of its mortgages from 3.75% to 4%.

This affects 200,000 borrowers with RBS and NatWest offset mortgages and home loans from RBS's One Account range.

The changes come just a few days before the third anniversary of the Bank of England cutting its bank rate to a historic low of just 0.5%.

"Halifax has written to customers advising them it is raising the cap or maximum rate it could charge on SVR which usually signals an imminent rate rise," said BBC business correspondent Joe Lynam.

"If Halifax increases SVR from current 3.5% to 4% that could add £16 a month for those with around £70,000 still remaining, or £24 a month for those with £100,000 left.

"But for those on an interest-only SVR it could mean a sharp 14% hike in monthly payments."

BBC News - Halifax expected to raise standard variable rate

[AtW]

"Halifax has argued that the cost of funding its mortgages is forcing it to increase the cap on the SVR,"

This is interesting really - BoE rates are still at 0.5% and Halifax pays tulip on savings, what exactly resulted in increase in their "funding" for existing mortgages?

[downsouth]

utter joke tbh, the one accounts rate has not dropped below 3.75% for me, like you say despite interest rates being 0.5%, they've always been super speedy to put up the rates, to$$ers

that said my mortgage payment was £9 last month! cant wait for the 0.10% they'll be paying me soon