Nearly 850,000 customers will see their mortgage rate rise from 3.5% to 3.99% on 1 May 2012 when Halifax hikes its Standard Variable Rate.
This is now the second rate rise announcement by Halifax inside the last seven days as in addition, it has already been reported that thousands of other Halifax mortgage customers would also see their mortgage payments rise as well as it also said that it is raising the cap on its Standard Variable Rate (SVR) .
Halifax, part of Lloyds Banking Group, has written to forty thousand customers indicating that it is raising the cap on its SVR to 3.75pc above Bank of England Base Rate or 4.25pc.
The cap applies only to customers who have an Early Repayment Charge on their mortgage.
However these borrowers are now being given three months to change their mortgage to another lender or repay it without charge.
The bank previously said that rise should not be read as an indication that the SVR was about to rise, but this now appears not to be so.
Halifax said the change acknowledged that the cost of funding a mortgage in today’s market remained significantly higher than the longer term average.
The increased rate reflected the fact that raising money through retail savings and in the wholesale markets was currently very expensive by historical standards.
If you are an existing Halifax customer and would like to consider alternatives from the open market , please feel free to get in touch as I would be delighted to help.
No comments:
Post a Comment