Mortgage rate rise – one million mortgage holders affected.

March was the month mortgage lenders started notifying SVR mortgage holders of a mortgage rate rise. Over a million SVR mortgage holders were advised that as from 01 May their monthly costs would increase.

Today was the day that the announced SVR increases came into effect, and those of you who have not remortgaged will now have to pay extra for your mortgage. It is believed that some of you could see your annual mortgage repayment rise by as much as £660.

The Halifax who are Britain's largest mortgage provider has blamed its mortgage rate rise on the eurozone crisis, the rate increase is expected to affect around 850,000 home-owners. Halifax are just one of several lenders to increase SVRs, its rates have increased by almost half a per cent which will add an additional £55 per month to a £200,000 mortgage.

Other lenders who have increased their SVRs include Clydesdale/Yorkshire, the Co-operative and One Account, rate increases are between a quarter and half a per cent which is expected to affect around 184,000 home-owners.

A mortgage rate rise announcement was also made by The Bank of Ireland who have notified customers that its SVR will increase 1.5 per cent by September this year.

Deal Direct see today's mortgage rate hikes are the start of bad news for borrowers. It is anticipated that other mortgage providers will follow suit and announce a mortgage rate rise during the next few months.

Consumer magazine Which? conducted a survey which suggested an increase in repayments of £100 per month could put 1 in 10 at risk of repossession. SVR mortgage holders are therefore recommend to look around for a new deal now.

Deal Direct are committed to helping those home-owners affected by a mortgage rate rise.

Contact one of our impartial skilled advisers today. 

We will search the market for the right remortgage deal for you.