Debt management plans could help offset impact of SVR hikes
Debt management plans could help offset impact of SVR hikes
Tuesday 2nd February 2010
The Times reports that Norwich & Peterborough is increasing its variable rate by half a percentage point, to 5.35 per cent. Homeowners with a £150,000 interest-only mortgage will be hit with a £700 rise in the annual cost of repayments, according to the news provider.
Holmesdale is also increasing the cost of its SVR by 0.35 percentage points, bringing it to 4.89 per cent.
The news mirrors an earlier announcement by Skipton Building Society, which stated that due to "exceptional market conditions" its SVR would increase in March to 4.95 per cent, up from its current rate of 3.5 per cent.
Skipton Group chief executive David Cutter said the organisation had to consider both borrowers and savers in the current economic climate.
Trinity Financial Group spokesman Aaron Strutt told the Times that a number of other building societies were expected to join the trend over the coming days and weeks.
"Borrowers should avoid the extra cost by switching onto a cheaper deal from another lender. However, those without a large enough deposit or equity stake in their homes will be stuck," he said.
Recent research by financial information provider Moneyfacts.co.uk revealed a growing trend among mortgage providers to increase their SVR since the base rate was set in March last year.
News article brought to you by Debt1 - UK Debt Management Specialists
Related News
Debt management plans may be necessary to combat rising inflation - 01/02/10
Consumers may be turning towards debt management plans in 2010, following a warning from one expert that inflation is likely to have an ongoing impact
Consumers may be turning towards debt management plans in 2010, following a warning from one expert that inflation is likely to have an ongoing impact
Debt management overrides spending for many Brits - 28/01/10
Brits' saving levels continue to increase, suggesting many people are committing to debt management plans in a bid to stay on top of their finances
Brits' saving levels continue to increase, suggesting many people are committing to debt management plans in a bid to stay on top of their finances
Debt solutions may be needed to combat rise in insurance premiums - 27/01/10
Debt solutions may be needed by motorists struggling to fund a significant rise in car insurance premiums
Debt solutions may be needed by motorists struggling to fund a significant rise in car insurance premiums
Support saving and debt management, group urges - 26/01/10
People committing to saving and debt management plans should be supported, a new consumer action group has claimed
People committing to saving and debt management plans should be supported, a new consumer action group has claimed
Debt management could be needed to soften deep impact of recession - 26/01/10
People still out of work may require debt management help, with new figures suggesting the impact of the recession is becoming more widespread
People still out of work may require debt management help, with new figures suggesting the impact of the recession is becoming more widespread
News Article Search
Quick Apply
News Archive