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Clydesdale and Yorkshire Banks increase SVRs

Clydesdale and Yorkshire Banks increase SVRs

Category: Mortgages

Updated: 09/03/2012
First Published: 09/03/2012

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The Clydesdale and Yorkshire Banks have announced increases to their standard variable rates for residential mortgage customers.

The increase is to come into effect from 1 May 2012, and will see the banks' SVRs rise from 4.59% to 4.95%, with an increase in wholesale borrowing being blamed.

"This is the first change to the Banks' SVR in over three years, and reflects the increased cost of borrowing associated with the provision of mortgages," said Clydesdale and Yorkshire in a statement.

A customer with a £100,000 interest-only mortgage will see their monthly repayments increase by around £30 per month.

Customers who wish to remortgage with another provider before 31 July will not be charged the usual mortgage exit fees, it was confirmed.

The news follows a recent announcement by Halifax that it is to increase its own SVR from 3.5% to 3.99% on 1 May, while Bank of Ireland will raise its standard rate from 2.99% to 3.99% in June, then rising to 4.49% in September.

Steve Reid, retail director for the banks, said the decision was not taken lightly and that the impact it would have on some customers was appreciated.

" But you only have to look at the narrow gap between longer-term savings rates and mortgage borrowing rates to see how things have changed," he added.

"This change will help enable us to continue to support savers and maintain the competitiveness of our deposit rates.

"Our commitment to the mortgage market, including strong support for first-time buyers as one of only a handful of lenders who have consistently offered 95% LTV mortgages, remains as strong as ever."

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