A mortgage industry expert has warned consumers that lender standard variable rates (SVR) could rise, a fluctuation that could see many borrowers facing financial complications. The news comes despite Bank of England base interest rate remaining stable in the month of July, for the eleventh month in a row.
Darren Cook, who is the head of mortgage research at moneyfacts.co.uk, has made the important point that lenders offering variable rate mortgages do have the right to change their SVR even if the base rate remains stable.
Mr Cook had the following to say on the matter: "While the cost of fixed rate mortgages have continued to creep upwards, those consumers on discounted rates should not assume that as the bank base rate has remained unchanged, that their rates will also remain static. Customers of Norwich and Peterborough Building Society, Nottingham Building Society and Co-operative Bank on discounted deals will soon see rate rises with SVR rates increased by as much as 0.25 per cent."
This would lead to slightly larger repayments, and less disposable income for the borrower. The news comes following reports that record mortgage levels could prompt the Bank of England to increase interest rates . Experts urge would-be homeowners to not borrow beyond their capacity.
