Mortgage lenders 'will raise SVRs' in 2010
11 January 2010 16:35:43
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| Base rate freeze will not deter lenders from raising rates. |
The Bank of England confirmed last week that its Monetary Policy Committee had decided to maintain the base rate of interest at 0.5%.
However, Ben Wilkie, editor of What Mortgage, explained that this move is unlikely to be reflected in the actions of major mortgage providers over the course of 2010.
He said: "Most lenders don't use the Bank of England rate as a marker because they have to borrow money from the money markets and those rates have been rising.
"Increasing SVRs always starts off [when] a couple of them stick their heads above the parapet and once that has happened - and presumably they have got all the criticism for it - then all the other lenders will do it as well."
Mr Wilkie added that Britons should aim to shop around in order to find the best mortgage deal in the current economic climate.
The Bank of England confirmed recently that there were 60,518 new mortgage approvals in November 2009, compared to 57,718 in October.
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