Mortgage rates are set to soar for hundreds of thousands of borrowers after the Skipton this week announced plans to raise its standard variable rate by almost half despite there being no increase in the bank base rate for a year.
And other building societies are likely to follow Skipton’s lead warns Melanie Bien, director of independent mortgage broker Savills Private Finance. “Some of the smaller lenders who need to repair their balance sheets have started raising their standard variable rates as a way of clawing in some extra cash,” explains Bien.
Building societies which have increased their SVR so far include Ipswich, Cambridge, Scottish, Marsden and the Mansfield.
Source – The Independent
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