If you’ve been enjoying the low mortgage rates we’ve been graced with, courtesy of the recession – beware, things are about to change.
According to the Daily Mail and Moneyfacts, eight financial institutions have already raised their Standard Variable Rates and more are expected to follow suit. Keen to show the “genuine” recovery to the recession, those working in the property market seem to have outgrown their patience.
With 5.5 million people in the UK having a mortgage either on an SVR (Standard Variable Rate) or linked to one, this news can only bring yet another heavy burden to the money management issues of the household. And with experts estimating this could result in an extra £1400 cost a year, the question has be to asked, is this all moving a little too quickly?
Is the housing market so desperate to recover from the recession, that they’re willing to make homeowners victims of “necessary action”?
As news was released earlier this month confirming over one million homeowners in the UK are using credit cards to pay their mortgage payments, a rise in SVRs can only lead to one thing….repossessions.