Standard variable mortgage holders prepare for rate hikes.

Home-owners sitting on a standard variable mortgage rate are being warned that SVRs could be subject to rate increases over the summer months.

An increase in swap rates is likely to pile pressure onto lender's to increase their standard variable mortgage rates to cover any funding cost increases.

Despite remortgaging rates currently being low many home-owners revert to SVRs, while it is convenient to do so it is costly.

Currently average SVRs are set at 4.4%, many are far higher at up to 6%. With remortgage rates starting at 1.64% it makes far more sense to review the market and switch from a standard variable rate mortgage.

Standard variable rates have increased over the last 12 months, with many increases being made at a time when rates were historically low. If lenders are impacted by rising funding costs then SVR holders need to watch out as their rate could increase again and rise further.

After all if lenders increased SVRs at a time when funding was cheap, imagine what will happen as funding costs rise.

Standard variable rates can increase at any time. Rates are not linked to the Bank base rate, and so lender's can increase SVRs at will. To avoid rising rates mortgage-holders looking for security are advised to lock into a cheap fixed mortgage rates while rates remain low.

To compare the most competitive mortgages market wide call independent 'whole of market' Deal Direct on 0800 048 8828.

We are impartial experts who work on behalf of UK home-owners to source the best deals on offer.

If you want to make sure your rate will not increase over the coming months as mortgage funding costs rise, lock into a cheap fixed rate mortgage as soon as you can.

Switch to a cheaper mortgage deal today.

Call an adviser on 0800 048 8828.