SVR

The Financial Conduct Authority (FCA) has reached an agreement with Santander UK that will see the bank contact over 270,000 mortgage customers about unclear information it gave before increasing the cap on its standard variable rate (SVR) in 2008.

Santander, the UK's second largest mortgage lender, has been criticised for hiking its standard variable rate (SVR) by 0.5% - to 4.74% - a move expected to affect several hundred thousand customers.

Analysts are predicting a wave of increases in mortgage interest rates after Halifax announced it would increase its standard variable rate (SVR) to 3.99% from 3.5% in May.

Variable rate mortgage lenders are failing to pass on cuts in the base rate to customers, meaning some will face "real financial difficulty" when rates climb again, research suggests.