The intended increase that many lenders warned would occur to their standard variable rate (SVR) on May 1 has occurred.  Now those that did not give announcement that they would be increasing their SVR may do so in the days ahead since lending costs are only expected to increase rather than decrease.  Unfortunately the problem is that many of the homeowners that had their current mortgage deal end and converted to their lender’s SVR may not be able to remortgage.  Those homeowners will be facing increases they cannot avoid.

Research from the consumer group Which? has revealed that there are many homeowners that are finding the SVR increases fearful.  Of the 3,345 mortgage holders that were polled 70% are concerned about the rising interest rates and 14% admitted to already struggling with their current repayment levels.  With only an increase of £100 a month there will be 20% that will not have enough in their budget to meet daily needs and 11% will be let unable to make their mortgage repayments.

Which? chief executive, Peter Vicary-Smith remarked on the survey, saying, “Our advice to anyone struggling with their mortgage repayments is speak to your lender straight away.

“It is encouraging that a third of people we spoke to had approached their lender but worryingly in one in five cases, they said their lenders offered no help at all.

“This is just not good enough and we want to see banks do more to help their customers who are struggling.”

For those that are worried it is encouraged that they speak to their lenders right away to try to come up with a strategy that will work for both parties.  Those with difficult remortgage situations may want to contact a remortgage broker as they are used to handling complicated remortgages.  It will take an assertive outlook to make the most of the current remortgage lending market.