In the coming summer, mortgage loan seeker of the UK would witness a surge in the standard variable rate (SVR). It has been reported that Halifax, Bank of Ireland's UK arm- Bristol and West, Clydesdale and Yorkshire banks would be raising the SVR by 3.5% to 3.99%, 2.99% to 3.99% and 4.59% to 4.95% respectively.
The changes in the SVR would be witnessed throughout the summer. The SVR is set by the loan lender while keeping in mind the Bank of England base rate. Those who are not contented with the SVR of their respective lender can shift to some other mortgage provider.
However, while shifting to some other lender, people would be required to pay for additional fee which may include product fee and closing fee. It has been informed that Clydesdale and Yorkshire banks are planning to raise their fees for those customers who are shifting because of the increased SVR.
It has further been revealed that the rates of property have plunged by 10%. The lowered property rates have adversely affected the home owners as the value of home is less than the mortgage loan. However, the benefit of sticking with SVR is that people would not be penalized or charged for paying more each month.