Co-op Bank joins crowd of lenders upping SVRs

The Co-operative Bank is the latest lender to increase its SVR.

From May 1, it is raising its SVR by 0.5% – from 4.24% to 4.74%. It estimates the average increase seen by SVR clients will be £15 a month.

For customers on a high LTV – 90% or above – it is launching a five-year fixed rate that is available at the same rate as they currently pay, with no upfront fees or charges.

A spokeswoman for the Co-op says: “When changes are made that impact our customers, we seek to ensure that wherever possible we provide solutions.

“We recognise that some customers who have a higher LTV mortgage may be particularly concerned about this change and we have put measures in place to make alternatives available for them.”

Michael Ossei, personal finance expert at uSwitch.com, says the news is another blow to home owners who could see their monthly costs shoot up at a time when their finances are already stretched.

He says: “Many of those on tracker deals have been enjoying lower mortgage payments over the last few years as a result of the low base rate. But this will bring them back down to earth with a bang.

“And because the increase has nothing to do with the base rate, which still shows no signs of budging, the blow won’t be softened by a corresponding increase in savings rates.”

The Co-op’s move follows Halifax, Clydesdale and Yorkshire banks and Bank of Ireland, that have all hiked their SVRs in recent months.