Abacus Daily Debt News

Mortgage costs ‘on the rise’

Those with mortgages may face debt management problems despite the base rate freeze by the Bank of England as a number of lenders have increased standard variable rates (SVRs).

This means that homeowners are now faced with costs of up to £1,400 extra each year, the Daily Mail reports, citing research from Moneyfacts that revealed that eight financial institutions have driven their SVRs up.

Darren Cook of the company noted that as some have taken this action, it is likely that others will do the same.

"The momentum to increase SVRs appears to be gathering pace," he was quoted as saying.

And the news source observed that approximately 5.5 million people in the UK have a mortgage either on or linked to SVRs, a number that has climbed in recent years as it can be the cheapest option.

In related news, Hannah-Mercedes Skenfield of moneysupermarket.com recently noted that the rise being seen in first-time buyer mortgages was "encouraging" and could lead to a strong improvement in the market if it continues.

By Sarah Adie