Homeowners Could Face an Increase in Monthly Mortgage Payments
Homeowners with Halifax will be facing a change in the lender’s standard variable rate (SVR). Their SVR will be increasing from 3.50 per cent to 3.99 per cent on May 1 and this will be impacting close to 850,000 Halifax customers. The move by Halifax will likely be followed by many other lenders and the trend will be a wake-up call to homeowners to start looking for a remortgage deal.
Halifax mortgage director Stephen Noakes remarked “In light of market conditions, particularly ongoing higher funding costs, it has been necessary for us to review the Halifax SVR. At 3.99 per cent, the rate more accurately reflects the cost of funding a mortgage, but it remains competitive for borrowers.”
With there being a large majority of homeowners that have yet to remortgage it is considered that they were content to pay on their lender’s variable rate. The experts have long warned that homeowners should not allow themselves to grow accustomed to low interest rate offerings. The interest rates will at some point increase and the offerings from lenders will not always be as cheap as can be found today.
John Charcol senior technical manager Ray Boulger said “This represents a huge remortgage opportunity for brokers. The rate rise will be a big catalyst for Halifax borrowers to review their mortgage options, and a large proportion of the lender’s book will be up for grabs.”
Remortgages are currently cheap from many lenders and the homeowner that can benefit from a remortgage deal would do well to seriously begin shopping soon.