View more on these topics

SVR clients next in line to feel the pain


While the economy has slowly edged out of recession the pain is only just beginning for thousands of home owners.

Previously somewhat cushioned from the downturn, those on SVR mortgages are now braced for a dose of reality.

Last week, Norwich and Peterborough Building Society became the latest lender to raise its SVR, upping the cost of borrowing for thousands of clients.

Although the Bank of England base rate has remained at 0.5% since last March N&P’s SVR has increased to 5.35% from 4.85%.

N&P’s move follows Skipton Building Society’s decision last month to break its promise to borrowers and increase its SVR to more than 3% above the base rate.

Several smaller building societies including Kent Reliance Building Society and Cambridge Building Society have also raised their SVRs in recent weeks, with others likely to follow.

Borrowers’ woes have been compounded by the revelation that the number of insolvencies in England and Wales rocketed to a record 134,142 last year, with further rises predicted this year.

Rising unemployment and the credit crisis drove the figure beyond the previous record of 107,288 insolvencies in 2006.

This trend is likely to continue and brokers should consider the consequences when recommending new mortgages or remortgages, ensuring they highlight the benefits of mortgage payment protection insurance. It’s not the case that things can only get better – they may get a great deal worse.


65% of lenders worried about BTL repossessions

Latest research published in the annual Moore Blatch 2010 repossessions report, compiling the views of lenders and asset managers,  reveals that 65% of mortgage lenders are worried about an increase in buy-to-let repossessions if rental yields reduce.

Mortgage rescue plan fails to impress

The government’s £285m Mortgage Rescue Scheme has come under fire after figures last week showed it has only helped 276 households since it was launched in January 2009. Some 182 households accepted offers through the scheme in Q4 2009 – twice the amount who accepted offers between January and October. In total, 4,310 home owners […]

Mortgage Mole



News and expert analysis straight to your inbox

Sign up