View more on these topics

Clydesdale and Yorkshire increase SVR from 4.59% to 4.95%

Clydesdale and Yorkshire Banks have today announced a change to their Standard Variable Rate for residential mortgage customers.

With effect from May 1 2012, the banks’ SVR will move from 4.59% to 4.95% – the change will affect 30,000 of its existing mortgage customers.

The change will mean an average increase in repayments of less than £30 per month.

This is the first change to the banks’ SVR in over three years, and the bank says it reflects the increased cost of borrowing associated with the provision of mortgages.

Until July 31 2012, its standard mortgage exit administration fees will be waived for impacted customers wishing to re-mortgage to another provider.

Steve Reid, retail director at the banks, says: “While our SVR will continue to remain competitively below a number of other UK mortgage providers, the market and costs associated with providing mortgages have changed significantly in the three years since the rate last moved.

“We don’t take such decisions lightly and fully appreciate the impact this will have on some customers 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.

“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.”

Recommended

1

Different strokes

For military personnel, the disabled or newly divorced singletons getting a mortgage can look hopeless. But products designed specifically for such groups do exist, as do deals for friends who choose to buy together

RAY_BOULGER.gif
4

SVR increases add to borrowers’ woes

Despite base rate remaining at 0.5% for three years Bank of Ireland yesterday became the second lender in less than a week to announce an SVR increase.

Bank of England keeps rates on hold

The Bank of England’s Monetary Policy Committee has voted to keep interest rates on hold at 0.5% and to maintain the size of the asset purchase programme at its March meeting.

The death of retirement – a boost for protection?

According to our recent report on the death of retirement, changes in workplace pension provision mean that coming generations of retirees could have a radically different experience of retirement from their parents. The average contribution rate into an old-style final salary pension was around 20% of total wages, the statutory minimum for a new automatic […]

Newsletter

News and expert analysis straight to your inbox

Sign up
Comments
  • Post a comment
  • davie dean 10th March 2012 at 12:43 pm

    brokers turn on the lead taps time to get busy.

  • davie dean 10th March 2012 at 12:43 pm

    brokers turn on the lead taps time to get busy.

  • Paul 9th March 2012 at 3:57 pm

    and spokesman for our industry – or so it seems – Mr Boulgar – said it didn’t see anyone following suit!

    As Shane said it’s good for business, the phone hasn’t stopped this week!

  • Edward Riordan 9th March 2012 at 3:55 pm

    All those people on Clydesdale Discounted SVR rates….

  • shane 9th March 2012 at 1:42 pm

    The first one blinked, now more will follow like lemmings, good for business though as long as you can place it though!

  • Phil Shelford 9th March 2012 at 1:17 pm

    It will be interesting to see who else follows this lead. Funny how the BBC’s “Independant Mortgage Analyst” said no one else would be doing this only this morning. Proves what she knew. It was always obvious that if the Bank of England kept leaving the base rate on hold lenders would take matters into their own hands to start the market moving by encouraging people off SVR.