Hundreds of thousands of Santander mortgage customers will be hit with a hefty rate hike – and the threat of much worse to come.
The Spanish-owned bank announced it would increase its standard variable rate (SVR) from 4.24% to 4.74% on October 3.
Someone with a £150,000 mortgage would see their payments rocket by £516 over the next year.
Santander is also changing its rules to allow it to increase its SVR even more.
The firm will whack up its “SVR cap margin” – the maximum amount above the Bank of England’s base rate it can charge – from 3.75% to 4.99% from September 24.
It will mean Santander has the power to increase its SVR to 5.49%. If it does, someone with a £150,000 mortgage could see their monthly payment leap by £110 a month.
There is now a fear other banks will follow suit. A wave of lenders, including Halifax, Clydesdale and Yorkshire Banks, and the Co-operative, increased their SVR earlier this year.
WHY USE NEIL SOUNDY FINANCIAL SERVICES FOR YOUR REMORTGAGE ADVICE IN CARDIFF?
The vast majority of mortgage brokers and advisers still restrict their advice to mortgages that pay them commission.
What makes us different is that we give expert impartial on commission and non-commission paying mortgages. This means we will give you advice on the mortgage market.
View the video on our homepage that explains how we can offer at least twice the choice of mortgages compared to a standard mortgage broker.
How Much Will It Cost Me For Your Advice?
A fee of £495 is payable on completion of the mortgage and Neil Soundy Financial Services Ltd will keep the commission received from the lender for arranging the mortgage.
Neil Soundy Financial Services Ltd is an appointed representative of HL Partnership Ltd which is authorised and regulated by the Financial Services Authority.
The Financial Conduct Authority does not regulate some forms of buy-to-lets.
We do not give or imply legal or taxation advice. We recommend you contact a solicitor or accountant for advice in these areas.
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