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Clydesdale and Yorkshire Banks to increase SVR

Clydesdale and Yorkshire Banks are increasing their SVR for residential mortgage customers from 4.59 per cent to 4.95 per cent.

The change, effective from May 1, will affect around 30,000 existing mortgage customers.

The banks say borrowers will see an average increase in repayments of less than £30 a month and say the hike is due to the increased cost of mortgage funding.

Until July 31, the lenders will waive their exit fees so impacted customers can remortgage to another provider.

Retail director Steven Reid says: “While our SVR will continue to remain competitively below a number of other UK mortgage providers, the market and costs associated with providing mortgages have changed significantly in the three years since the rate last moved.

“We don’t take such decisions lightly and fully appreciate the impact this will have on some customers but you only have to look at the narrow gap between longer-term savings rates and mortgage borrowing rates to see how things have changed.”

Earlier this month, Halifax announced it would increase its SVR from 3.49 per cent to 3.99 per cent from May 1 and Bank of Ireland announced its SVR would increase in two stages to 4.49 per cent from 2.99 per cent by September.

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Comments

There are 5 comments at the moment, we would love to hear your opinion too.

  1. sounds like clydesdale just following the pack again

  2. Bottom line is – B O E will not raise rayes so screw them, we will just do it ourselves. Strange they all have same excuse. If costs are becoming tight, cut back on BONUS, or is that giving them a doze of the “scoots. I reckon Halifax drew the short straw to see what reaction their would be – very little – so now they are all in fo a shot. Absoluyely disgraceful

  3. How many businesses would like to be able to make a profit of 100%, 200%, 300%. Even if they base lending cost on the LIBOR Rate they would still be making these sorts of profits. Absolutely disgraceful

  4. So, if the average extra cost is £30 pm, and the cost of going elsewhere is at least £1,000 in arrangement fees, if it is possible for customers to go elsewhere, that’s 33.33333 etc months to get the costs back. So what will the “average” customer do, pay up probably. Nice little earner for Clydesdale and others.
    Now just wait for everyone else to think, money for nothing here, may as well have some – so who’s next?

  5. I do not see any sign of the greedy banks increasing the rates being paid to depositors. Shameful.

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