Mortgage misery for thousands
MORTGAGE costs for thousands of borrowers will jump this week as one of the country’s biggest lenders hikes interest rates.
Santander’s standard variable rate’s 0.5% rise to 4.74% will result in an average increase of £26 a month or £312 a year for a £100,000 mortgage.
The switch will affect hundreds of thousands of customers, although Santander has not disclosed the figure.
Santander’s change, first announced in August, is one of a number by lenders in recent months, dashing hopes that households will see some benefit from the Bank of England’s funding for lending scheme.
More than a million home owners saw an increase in May when the Halifax, the Co-op Bank and Clydesdale and Yorkshire Banks raised their SVR rates.