Mortgage Deals SVR Rate Increases for UK Mortgage Customers

March 15, 2012 - PRLog -- Over a million mortgage customers will see a large rise in their monthly payments over the coming months adding further strain to the already stretched house hold budgets.

Customers facing rate rises are those who have had mortgage deals which have now ended and reverted to the lenders “Standard Variable Rate” (SVR). Halifax has increased their SVR from 3.5% to 3.99% - affecting 850,000 customers. RBS offset mortgage customers rates rise from 3.75% to 4% and Clydesdale and Yorkshire Banks have announced plans to raise their rates from 4.59% to 4.95%, affecting 30,000 residential mortgage customers – and it is feared now the ball is rolling many other lenders will follow by putting up their standard variable rates.

The SVR rate is the standard rate which a large number of borrowers revert to after their tracker deal or fixed rates have expired. With the historically low interest rates many mortgage customers have been happy to remain on the lenders SVR rates, until now as lenders announce rate rises in their SVR rates despite the Bank of England Base Rate remaining unchanged.

Kevin Gibson, Director of Ascot Mortgages “With so many people leaving their mortgage on the lenders SVR rate when their fixed rates came to an end we are likely to see huge demand on independent mortgage brokers, as mortgages customers rush to secure the best deals to avoid the SVR rate rises”
http://www.ascotmortgages.co.uk

A lot of borrows have reacted angrily towards the rate rises as interest rates are at their lowest they have been for three years, and there is no movement there, but the cost of borrowing has gone up and the banks want to pass that cost on to their customers.
“If they are saying they need to pass on the rising costs of borrowing, why don’t they every pass on the falling costs? The rising SVR rates couldn’t have come at a worse time”

Specialist Mortgage Brokers, Ascot Mortgages Ltd, say they are disappointed at the move as it will add hundreds to the costs of an average mortgage, however they urge all mortgage customers facing interest rate risings contact Ascot Mortgages as soon as possible as they have a dedicated team of experienced mortgage advisors working solely to secure mortgages for customers faced with sharp rises.

“A lot of the rate rises do not come in to effect until the 1st of May, so it is possible for borrowers to avoid the increased costs completely by getting in touch with Ascot Mortgages who will arrange a new mortgage deal for you before the rate rises will kick in – for a free mortgage review please call us 01925 711558 or visit our website”
http://www.ascotmortgages.co.uk/free-consultation

An RBS spokesman said the rises were down to the higher costs they were incurring borrowing money, which they had absorbed for some time before opting to pass it on to some of their customers.

The news come as families are facing ever-increasing costs of living, and any rise in mortgage payments could lend to an increase in payment problems and arrears.
AVOID THE RATE RISE CONTACT ASCOT MORTGAGE TODAY.

-   Ascot Mortgages Ltd – Independent Mortgage Broker
Telephone: 01925 711558
Email: enquiries@ascotmortgages.co.uk
Web www.ascotmortgages.co.uk
Ascot Mortgages Ltd, 8 Webster Court, Warrington, Cheshire, UK WA5 8WD

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