ING Direct is the latest lender to increase its Standard Variable Rate mortgages, jumping from 0.49% to 3.99%, coming into effect from 18th July for new customers and 1st August for existing customers
It follows the lead of other lenders, including RBS, Halifax and Bank of Ireland who have hiked their SVRs in recent months, pointing to the increased cost of financing ther mortgages because of "adverse economic conditions."
The increases will add about £40 a month to the monthly repayments on a typical £150,000 repayment mortgage. If you have a fixed rate mortgage then your rate won’t be affected for the terms which you’ve agreed to. If, once you’re fixed rate deal finishes, you’re due to move on to the SVR, and then be prepared to pay the higher rate then.
If you’re currently on a SVR, then now might be the time to start reviewing your situation – and a good place to start is Gocompare.com’s mortgage comparison service. If in any doubt, seek the advice of an independent financial adviser.