Its not often I feel the need to go back and revise something I've written - in fact the urge to do so has never taken hold of me before.
But surprisingly, only 20 mortgage lenders have so far increased their standard variable rate (SVR) in response to the base rate increase by the Bank of England (BoE) last week.
Surely there must be some mistake I hear you cry. Well…er...actually...no. There’s no mistake. According to Moneyfacts, so far only 20 mortgage lenders have increased their SVR in response to last week’s rate rise.
The lenders which have raised their rates include Abbey, Cheltenham & Gloucester, Mortgage Express, Tesco Mortgages, First Active, First Direct and Halifax.
All have increased their SVR by 0.25% as expected, although Halifax may stand out for some light praise for being open and honest about the increase by issuing a press release – well it’s the only press release I received from any of the lenders about their rate increase anyway – and for announcing that the rate increase would not take effect until September.
So far so good but spare a thought for those borrowers with Norwich & Peterborough who saw their SVR increase by 0.19% in the middle of June for no discernable reason and then saw it increase again by 0.25% following the rise in the base rate - taking the total increase in the SVR to 0.44% over the last two months.
Meanwhile, the One Account - which given it is a purely online proposition one might be forgiven for thinking it had slightly reduced costs when compared to a traditional lender - has increased its variable rate mortgages by the standard quarter point, but has also increased rates (by reducing the discount) on its discounted variable rates by 0.35%.
This means, according to Moneyfacts, a two-year deal with a maximum loan to value of 85% has increased from 4.89% to 5.24% with the revert to rate increasing from 5.45% to 5.89%.
So now we have the (sort of) good - Halifax, and the bad – take a bow the One Account and N&P, but where’s the ugly? Well fingers crossed there isn’t one but watch this space as Moneyfacts is promising to keep an eye on when and in what way the lenders react to the rate rise in the coming weeks, suggesting the fact only 20 lenders have so far reacted to the change may be the result of them having been caught out by the BoE’s decision.
With over 100 lenders in the market, there is still plenty of time for them to live up to expectations and pass on the increase to their customers before the merry-go-round of rebroking business begins. I’m sure many mortgage intermediaries and their clients will be waiting with baited breath.IFAonlie
HL and Liberty SIPP slowest
Lifetime and annual allowances
'IFAs bore the brunt'
'Recovery or boom'