Prepare for a Santander standard variable mortgage rate increase.
Santander standard variable mortgage holders are advised to remortgage before their rate increases in October.
Mortgage funding costs are falling and the base rate has remained at an historic low for over three years, yet Santander has announced plans to increase its rate.
Santander has warned its SVR mortgage holders that their rate will rise by half a per cent from 01 October.
The half per cent increase will mean a standard variable mortgage rate of 4.74%, which will make it one of the highest on offer compared to its competitors.
Santander's SVR cap will also increase, currently the lender guarantees that its rate will not rise above 3.75% plus base. From October its margin will increase which means its SVR may end up as high as 5.49% plus base.
Santander have been accused by critics as profiteering, however a Santander spokesperson has advised that higher funding requirements have led to higher costs, adding mortgage rates must be increased to cover these costs.
Hundreds of thousands of home-owners will be impacted by an increase to their rate and those with a good level of equity are recommended to switch to a cheaper offer.
Many standard variable mortgage holders may be worried that the Santander SVR increase could pave the way for their lender to introduce a similar rate increase.
Those concerned about an increase to their lender's standard variable rate should call Deal Direct to compare cheap remortgage offers.
Contact one of our advisers
for a competitive remortgage quote.
