Halifax mortgage rate increase announced.

From 1st May 2012 Halifax mortgage standard variable rates will be increased by just under half a per cent going from 3.50 to 3.99 %.

The lender announced the changed advising that mortgage funding costs are today significantly higher than the long term average. The lender added that the Halifax mortgage SVR increase reflects the fact that raising money through both saving and wholesale money markets is at present extremely expensive.

The bank is the biggest mortgage lender in the UK and the rate change is expected to affect around 850,000 customers. Repayments on a £100,000 mortgage are due increase by around £300 a year which is not the news many cash strapped home-owners want to hear.

Over the next few weeks Halifax mortgage customers are to receive a letter advising them of the increase. The lender says that they are in the process of recalculating customers monthly mortgage payments and will follow up their initial rate increase notification letter with more specific details of the rate change, including new monthly payment figures.

 

The announcement has been made in the wake of the Royal Bank of Scotland's announcement of an increase to its rates. The RBS increase will affect approximately 200,000 customers. Mortgage holders with other UK banks may also begin to fear that their lender could follow suit and announce mortgage rate increases.

For those concerned about the impact of the Halifax mortgage SVR increase call Deal Direct, we can negotiate a new deal on your behalf either with the Halifax or another lender.

Deal Direct can help you reduce your mortgage repayments.

Let our skilled mortgage advisers do the hard work for you.

Fill in our enquiry form opposite or telephone 0800 048 8828.