As lenders hike mortgage rates, is it time to bail out? | Mail Online

As lenders hike mortgage rates, is it time to bail out? | Mail Online

On Saturday, the Mail revealed how Halifax, part of state-backed Lloyds Banking Group, is increasing its standard variable rate (SVR) from 3.5 per cent to 3.99 per cent from May 1.
This is Money had already warned this move was imminent last Wednesday.

This affects 850,000 customers. Someone with a £150,000 mortgage will see monthly payments jump from £751 to £791 — a £40 increase.

Earlier in the week, Royal Bank of Scotland hiked rates for its offset and One Account customers from 3.75 per cent to 4 per cent — affecting about 200,000 households. This will see monthly mortgage payments increase from £771 to £792 — a £21 increase.

Now mortgage experts believe other banks may follow suit.

Why is this important?
SVRs are the standard rates banks. Building societies put customers on to their SVRs when their fixed or tracker deal comes to an end. SVRs are not fixed, and though they are not pegged to the Bank of England base rate, historically they have only tended to rise and fall when it changes.