Mortgage repayments soar following increase in standard variable rates

Borrowers are facing high mortgage repayments following a hike in standard variable rates by building societies.

[UKPRwire, Fri Feb 12 2010] Norwich and Peterborough building society is the latest lender to announce an increase in its standard variable rate (SVR), meaning thousands of borrowers face a sharp rise in mortgage repayments.

As reported by the Guardian, an increase in Norwich and Peterborough’s SVR from 4.89 per cent to 5.35 per cent, will add £30 a month to a £100,000 repayment mortgage. Other lenders to have recently pushed up their SVRs include; Holmesdale, Skipton, and Nationwide building societies.

This could mean that a remortgage could provide homeowners with a better and cheaper option as they may be able to find a better deal by remortgaging their house.

One of the UK’s leading debt management companies; Debt Release Direct, believes the news could spark a busy time for debt management companies such as themselves.

Chris Bannister from Debt Release Direct, said; “The home is the biggest investment most of us will ever make, and the biggest debt. Debt Release Direct can help with most debt problems”.