Co-op to increase SVR from 4.24% to 4.74%

The Co-operative Bank will be raising its standard variable mortgage rate by 0.5%, from 4.24% to 4.74%, from May 1 2012.

The average increase seen by its SVR customers will be £15 per month.

The bank says it recognises that some of its customers who have a higher LTV on their mortgage may be particularly concerned about this change and it has specifically put measures in place to make alternative options available for these customers. 

In addition to the existing products across its wider mortgage product range, it will be making a new product available specifically for existing customers with a higher LTV – 90% or above, who may want to find an alternative arrangement.

This will be a five-year fixed rate mortgage aimed at customers who are looking for longer term stability.

This will be available at the same rate as they currently pay, with no upfront fees or charges, offering these customers the option to continue paying the same monthly payment for the next five years.