Halifax The First Of Many To Increase Rates

Halifax The First Of Many To Increase Rates.

Halifax will increase its SVR from 3.50% to 3.99% on 1st May, which will affect around 850,000 customers.

For a customer with a mortgage balance of £100,000 and 15 years of the term remaining, the change will equate to a £24.30 increase in their monthly payment.

This is the first of many we believe, as lenders react to more expensive costs for them to borrow in addition to the requirement to build up larger reserves as we move towards new capital Solvency requirements set by the EU to reduce the risk of bank bailouts in the future.

According to Halifax mortgage director Stephen Noakes, it has been necessary to review their SVR in light of market conditions.  At 3.99%, the rate more accurately reflects the cost of funding a mortgage, but still remains competitive for borrowers.