Mortgage Holders Feeling the Pinch

Mortgage holders are already feeling the effects of the early May 2007 rate rise as lenders such as Northern Rock, Mortgage Express, Barclays and Abbey Mortgages are poised to make adjustments to their policies.

Following the rate rise from 5.25% to 5.50%, various lenders have increased their own mortgage SVR (Standard Variable Rates).

Some providers have taken the opportunity not only to raise their SVR by the quarter point that the base rate increased, but also to use it as an opportunity to raise it even further.

The Daily Mail reports that Intelligent Finance has increased its offset SVR by 0.35% to seven% and Standard Life Bank has raised its SVR by 0.3% to 7.06%.