Monday 19th November 2007
Holders of standard variable rate mortgages from Standard Life could be facing a 0.15 per cent increase in their repayments, it has been revealed.
The financial services provider announced the rise last week, with industry insiders citing the credit crunch as a key factor in the move.
And the suggestions seem to be confirmed by a statement from Standard Life which also reasserts the competitive nature of the firms products.
"The change in standard variable rate is a consequence of significant changes to the mortgage market in recent months," the lender explains.
"Our standard variable rate still remains very competitive and below the industry average."
Interest on a typical Standard Life standard variable rate mortgage now stands at 7.46 per cent.
However, the move may be seen as unusual since it does not follow an increase in the Bank of Englands interest rate.
Indeed, the base rate could be set to fall in the coming months, according to independent mortgage broker John Charcol.
Head of communications Drew Wotherspoon explains: "What does appear to be clear now is the only way for interest rates now is down."
"In the present market though, no one can categorically say they know exactly what will happen next," he continues.
Mr Wotherspoon urges Britons looking to switch mortgages to obtain expert advice across the whole market to identify any issues they may face.
He adds that the best fixed-rate deals currently available are a two-year deal from Abbey or the five-year Nationwide package.
These carry rates of above 5.5 per cent, prompting the spokesperson to encourage consumers to consider tracker mortgages, which could follow the base rate down if any reduction is made in the coming months.
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