Arab Today, arab today halifax expected to raise standard variable rate
Last Updated : GMT 23:10:03
Arab Today, arab today
Arab Today, arab today

Halifax expected to raise standard variable rate

Arab Today, arab today

Arab Today, arab today Halifax expected to raise standard variable rate

London - Arabstoday

The UK\'s biggest mortgage lender, the Halifax, is expected to raise its standard variable mortgage rate (SVR) from 1 May. The Halifax said the rise - from 3.5% to 3.99% - was due to the higher cost of raising funds for mortgages from both savers and the financial markets. On Friday, RBS raised the rate on two of its mortgages from 3.75% to 4%. This affects 200,000 borrowers with RBS and NatWest offset mortgages and home loans from RBS\'s One Account range. The changes come just a few days before the third anniversary of the Bank of England cutting its bank rate to a historic low of just 0.5%. \"Halifax has written to customers advising them it is raising the cap or maximum rate it could charge on SVR which usually signals an imminent rate rise,\" said BBC business correspondent Joe Lynam. \"If Halifax increases SVR from current 3.5% to 4% that could add £16 a month for those with around £70,000 still remaining, or £24 a month for those with £100,000 left. \"But for those on an interest-only SVR it could mean a sharp 14% hike in monthly payments.\" The Halifax has been part of the Lloyds Banking Group since January 2009, which is now 40%-owned by the government. It argued that its hand had been forced by market conditions. \"The change acknowledges that the cost of funding a mortgage in today\'s market remains significantly higher than the longer term average,\" the Halifax said. \"The increase to the rate reflects the fact that raising money through retail savings and in the wholesale markets is currently very expensive by historical standards.\" Consumer groups have reacted angrily to the news. \"It\'s shocking, it\'s coming at a time when people need this thing least of all,\" said Marc Gander, founder of the Consumer Action Group. \"Banks have never had it so good. They are doing fabulously well and it amazes me that they can\'t decide to share some of the burden that the rest of us are sharing. \"If they are saying they have to pass on rising costs, why can\'t they pass some of the good times on as well as the bad times?\" He also said he thought it likely other lenders would follow Halifax\'s lead. \"They reckon their customers are like sheep and they themselves are like sheep. \"One takes the lead, and I am absolutely confident that the rest will see these guys get away with it so think they may as well follow.\" But mortgage specialist Melanie Bien told the BBC she was not hugely surprised by the move. \"Borrowers will be bemused because interest rates are at their lowest that they\'ve been for three years, and there\'s been no movement there, but the cost of borrowing in the money markets has gone up a bit - this is what Halifax, RBS and other lenders are saying and this is why they now need to put the SRV up,\" she said. Ray Boulger, at mortgage brokers John Charcol, said the typical Halifax borrower was likely to have an outstanding loan of more than £100,000 and would thus pay considerably more than the lender had highlighted. \"If people have an interest-only mortgage their repayments will go up by 14%, regardless of how long their mortgage has to go,\" he said. The Halifax pointed out that its new rate was still cheaper than the SVR of many rival lenders such as RBS, Santander, Northern Rock, the Co-Op and the Yorkshire building society. And it said that many of its SVR borrowers would be able to transfer their loans to cheaper fixed-rate deals, at no extra cost. \"Customers who wish to transfer their SVR balance to a new product with Halifax, or another lender, would not incur an early repayment charge,\" the lender said. An RBS spokesman said the rises were down to the higher costs they were incurring borrowing money, which they had absorbed for some time before opting to pass it on to some of their lenders. The news come as families are facing ever-increasing costs of living across the board. On Friday, record high petrol prices were announced - motoring organisation the AA says the average cost of a litre of fuel is now 137.44p, with diesel at 144.67p a litre. Andrew Montlake of mortgage brokers Coreco said some Halifax borrowers would still be put under pressure by the increases. \"For many in the current environment, even a small rise in their monthly outgoings hurts in a disproportional manner than it may have done in more normal times,\" he said. \"There are many who are only able to keep the wolf from the door because rates are low and a move such as this could lead to an increase in problems and arrears.\" BBC

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today halifax expected to raise standard variable rate Arab Today, arab today halifax expected to raise standard variable rate

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today halifax expected to raise standard variable rate Arab Today, arab today halifax expected to raise standard variable rate

 



Arab Today, arab today
Arab Today, arab today Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today Lufthansa chief eyes up to 78

GMT 11:29 2017 Thursday ,21 September

Lufthansa chief eyes up to 78
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Rouhani at UN defends Iran nuclear deal

GMT 09:41 2017 Thursday ,21 September

Rouhani at UN defends Iran nuclear deal
Arab Today, arab today Saudi Arabia to unblock internet calling apps

GMT 11:31 2017 Wednesday ,20 September

Saudi Arabia to unblock internet calling apps
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Ministry seeks to improve education

GMT 14:49 2017 Sunday ,17 September

Ministry seeks to improve education
Arab Today, arab today China lifts 10-year travel ban

GMT 18:09 2017 Thursday ,21 September

China lifts 10-year travel ban
Arab Today, arab today Puerto Rico, Virgin Islands brace

GMT 12:01 2017 Wednesday ,20 September

Puerto Rico, Virgin Islands brace
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Intel chips loaded in Waymo

GMT 14:43 2017 Wednesday ,20 September

Intel chips loaded in Waymo
Arab Today, arab today Five trends at the Frankfurt auto show

GMT 12:04 2017 Monday ,18 September

Five trends at the Frankfurt auto show
Arab Today, arab today Actress Ream Hhagag prepares for a new film

GMT 09:40 2017 Tuesday ,19 September

Actress Ream Hhagag prepares for a new film
Arab Today, arab today France hopeful of persuading Trump

GMT 06:21 2017 Wednesday ,20 September

France hopeful of persuading Trump

GMT 12:14 2017 Monday ,18 September

Horia Farghaly happy for success of “Case G”

GMT 10:35 2017 Thursday ,14 September

New Zealand opposition looks

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 19:18 2017 Monday ,18 September

5,000 'Dieselgate' deaths in Europe per year

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 04:49 2017 Wednesday ,20 September

WHO urges Yemen to accept vaccines

GMT 16:04 2017 Tuesday ,19 September

Egypt tourism revival steady but slow

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 12:46 2017 Thursday ,21 September

Google likely to buy stake in Taiwan smartphone maker HTC

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday