Building society Norwich and Peterborough became the latest lender to raise standard variable rates, due to heightened competition within the saving market. Thousands of borrowers currently on the N and P SVR will now have to pay more for their mortgage loans .
The increase in SVR has been made despite Bank of England base rate remaining at a historically low 0.5% for almost a year. The new Norwich and Peterborough SVR is 5.35 per cent, up from 4.85 per cent. The decision is expected to affect almost 6,000 customers, with a further 1,700 indirectly affected.
The society defended their decision. The product manager for mortgages, Richard Barker, reportedly commented: "While in absolute terms savings rates seem to be low, relative to the base rate they are actually quite high. Our margins have been crushed – that's really the rationale behind the move. This is a change we are making reluctantly, but we are forced to make it for the long-term good of the society. We certainly have no plans at all for any further increases."
Building society raises mortgage rates
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Building society raises mortgage rates
Fri, 05 Feb 2010
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