Santander to increase SVR by 0.50% - Mortgages - News - Moneyfacts

News

Moneyfacts.co.uk News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

Santander to increase SVR by 0.50%

Santander to increase SVR by 0.50%

Category: Mortgages

Updated: 23/08/2012
First Published: 23/08/2012

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Santander has announced it will increase its standard variable rate (SVR) by 0.50% to 4.74% with effect from October, impacting on thousands of its customers.

The bank said the rate rise was a result of increasing costs such as high mortgage fund raising and operational expenses.

Santander is the eighth mortgage lender so far this year to increase its SVR, following the likes of Halifax and The Co-operative Bank.

It is believed that a borrower with a £100,000 mortgage would see their monthly repayments increase by nearly £30, equating to a rise of at least £300 a year.

A spokesperson for Santander said: "For the last three years the amount it costs us to provide mortgages and the rates we offer our savings customers have been increasing despite the base rate remaining static.

"Indeed, for some time the correlation between base rate and mortgage and savings rates has been weakening. Additionally, the cost of running a bank in the UK has increased dramatically through a combination of increased liquidity, capital and funding requirements."

Find the best mortgage rate - Compare best selling mortgages

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Homemover numbers fall for first time since 2011

The mortgage market enjoyed a record year in 2016, so it may come as a surprise to hear that the number of people moving home has fallen for the first time in five years, with fewer apparently taking advantage of the market.

2016: the best year for remortgaging since 2009

Remortgaging has certainly seen a surge in activity of late, helped in no small part by the dramatic drop in mortgage rates over the last year, so much so that 2016 as a whole proved to be the best year for the sector since 2009.

Homeowners underestimate remortgaging savings

Remortgaging has been enjoying a surge in popularity in recent months, and considering how much you could save, it’s a no-brainer! Unfortunately, many fail to realise the extent of potential savings, which could mean too few make the switch.
 
Close