Clydesdale and Yorkshire Raise Mortgage Rates

More increases in mortgage rates were announced this week, from the Clydesdale and Yorkshire Banks. The group’s increased rates will affect some 30,000 customers with standard variable rate mortgages, who can expect their interest rates to go up on 1 May, from 4.59 per cent to 4.95 per cent. As an example of what this means, a Clydesdale and Yorkshire customer with a £100,000 capital repayment 25-year mortgage will pay £581.68 a month, representing a £20.73 monthly increase almost an additional £250 every year. The banks said that the rate rise was the first to be applied to its standard variable rate mortgages for over three years, and had been made necessary due to the rising cost of mortgage funding. They added that they are prepared to waive exit fees for borrowers who which to switch mortgage providers up until 31 July. The last couple of weeks has seen a slew of mortgage increase announcements by various lenders, all who blame increased borrowing costs and the state of the world economy despite the continuing decision of the Bank of England to keep the base rate of interest at its historic low of 0.5 per cent. Last week RBS-NatWest said that it will be increasing rates on its Offset and The One Account mortgages by a quarter of a per cent, while the Halifax has also said that from May it will be increasing its standard variable rate mortgage rates from 3.5 per cent to 3.99 per cent. It is estimated than around a million UK mortgage-holders will be affected by the various lenders’ increases.