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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.


Bridging is no longer a dirty word

It’s not that long ago that short-term finance, or, perhaps more specifically, bridging finance were viewed as dirty words by mortgage brokers. The rates on offer were punishing, meaning there were only a handful of situations where it would be appropriate to arrange one. Some lenders didn’t exactly uphold great reputations for service standards either; […]


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  • c j 4th April 2012 at 7:42 pm

    Could someone explain why any SVRS have had to go up? Lenders are claiming higher funding costs however todays story on BBC suggests otherwise. loads of cheap money into the system in feb? where has all this cheap money gone then?

    04/04/2012 bbc news = “The ECB recently took the unusual step of lending more than 1tn euros ($1.3tn; £828bn) of low-interest loans to banks.

    The ECB provided 530bn euros of low-interest loans to 800 banks across the whole of the European Union – including 37.4bn euros to UK banks – in February, after 489bn euros were lent out in December”

    1 trillion of cheap money across europe? 37.4 billion euros of cheap money to the UK banks in feb alone? thats right before halifax announced their svr was going up?

    whats going on?

  • bobby 4th April 2012 at 12:04 pm

    Jool, 8 out of 10 mortgage borrowers will not be able to re mortgage even if they want to.

  • jools 3rd April 2012 at 5:59 pm

    Or we could look on the brightside chaps……that’ll be 1000s of high class mortgage customers looking at their statements very closely and looking for another deal and you never know, some advice from a nice, friendly, positive thinking broker who will sort it all out for them at a convenient time for them, not just bank hours (minutes).

    One of the reasons for the stagnant remortgage market is competitive SVRs. When the lenders start putting them up, it’s good news for brokers.
    Whack em all up to 7% I say, shake the complacency and make them phones ring!

  • Vince McMahon 3rd April 2012 at 10:51 am

    I disagree Bobby. This is just a case of lenders gradually taking matters into their own hands with the base rate not moving and making their SVRs a little bit more realistic.

    Can anyone really argue that 4.74% is an outrageous SVR?

    Lenders are fully aware that extreme SVR increases could blow up in their face as a number of mortgage prisoners would call it a day and stop paying/hand the keys back or get repossessed which is no good for the lenders obviously.

    I can’t see any link between this and recent interest only changes either. SVR changes are more likely to affect clients in negative equity who cannot remortgage.

    If anyone honestly has IO customers who can’t remortgage then i’d suggest affordability calcs haven’t been done properly in the first place as clients should not be put onto IO because its the cheap option.

  • Bobby 3rd April 2012 at 8:49 am

    This trend will continue. As more and more people cannot re mortgage in the future, the interest only fiasco being the prime offender, lenders will charge high svr’s and even higher svr’s on interest only clients who are mortgage prisoners to bump up their profits. This whole scenario has been engineered by the FSA through the MMR which has been an open goal for lenders to exploit their clients. Well done FSA.

  • Paul 2nd April 2012 at 4:15 pm

    I get the business model. Have cheap mortgages for only A1 customers. Get them to take out expensive insurance products.
    Then to cover the loss on the cheap mortgages just charge it to the existing borrowers who cannot remortgage.

  • Stuart Duncan 2nd April 2012 at 1:05 pm

    Co-operative think that, if you say that you are ethical enough times then that makes it true.

    I have seen little evidence of this in their past and present conduct.

  • Jim H 2nd April 2012 at 12:55 pm

    Co-op, the ethical bank…!????
    Seems to me they are hitting people who cant remortgage away and trapping them for 5 years on uncompetitive terms….?
    What happened to TCF….?