News
Co-op to raise SVR from 4.24% to 4.74%
The Co-operative Bank has announced it will increase its standard variable rate (SVR) by 0.50% to 4.74%, affecting around 54,000 customers.
The move will take place on 1 May and customers on its SVR will see an average increase of £15 per month.
The rate hikes begin, but is worse to come?The move will not affect Post Office customers.
A spokesman for Co-op said: “We do recognise that some of our customers who have a higher Loan to Value (LTV) on their mortgage may be particularly concerned about this change and we have specifically put measures in place to make alternative options available for these customers. The average increase seen by our SVR customers will be £15 per month.
“We will be making a new product available specifically for existing customers with a higher loan to value of 90% or above. This will be a five-year fixed rate mortgage aimed at customers who are looking for longer term stability.”
This will be available at the same rate as they currently pay, with no upfront fees or charges, offering these customers the option to continue paying the same monthly payment for the next five years.
The lender said the SVR increase is down to “changing conditions” in the mortgage market and the “increased cost of funding.”
Co-op added that it’s currently in the process of contacting all its customers who will be affected by this change.