Latest mortgage rates – what's next?

News for UK lenders latest mortgage rates reveal a growing number are increasing their SVRs.

Among those who have increased their latest mortgage rates are the RBS, Halifax, The Bank of Ireland and Bristol and West. It is now possible others may follow suit.

According to the Council of Mortgage Lenders, almost 2 million people have come off their initial deal on to lenders SVRs since 2010.

Millions of financially stretched home-owners who have been kept afloat by low mortgage rates during a difficult economic time, could now lose their low rate life-line.

The Halifax recently wrote to its mortgage holders telling them of a SVR cap increase, easing the blow by stating that the move is not an indication that the rate itself will increase. This increase seems to have set into motion a chain of events where other lenders are now seizing the opportunity to follow suit.

As other lenders follow the Halifax, millions of mortgage borrowers could begin to struggle. Those who have received letters notifying them of an increase should contact Deal Direct without delay for a cheap remortgage deal.

With the bank rate remaining at a record low level there was previously little incentive for SVR mortgage holders to find a new deal as SVRs were cheap. With the news that some lenders SVRs will increase, this situation may be changing.

Those of you on lenders SVRs which are set to increase should review your deal without delay as there are still good value fixed and variable remortgage deals available.

Those affected by the latest mortgage rates rise should act now and contact Deal Direct. We can compare all lenders remortgage deals on your behalf to find you a competitive alternative product.

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