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Halifax increases SVR cap

Halifax has increased the cap on its standard variable rate from 3 per cent above base rate to 3.75 per cent above base for certain existing borrowers.

The lender has written to 40,000 affected customers this week to inform them of the change, which will take effect from March 31.

Halifax’s SVR remains at 3.5 per cent and the change to the cap only affects borrowers who took out a mortgage before September 2007 and are on an SVR but have another part of their balance subject to an early repayment charge.

A spokeswoman for Halifax says: “We have written to all affected customers to explain that from March 31 2012, we are amending the cap on the Halifax SVR from 3 per cent above base rate to 3.75 per cent above base rate.

“This change does not affect the amount customers pay, and the SVR remains at 3.5 per cent. We continually assess the many dynamic factors that impact mortgage pricing, and have reviewed the current cap level to ensure that it remains suitable in the current market conditions.”

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