Despite the Bank of England base rate of interest remaining steady in July for the eleventh month in a row, an industry analyst has cautioned consumers not to assume this will mean their variable rate mortgages will also remain unchanged.
Darren Cook, the head of mortgage research at moneyfacts.co.uk, has said that lenders who offer variable rate mortgages will reserve the right to change their standard variable rate (SVR) even if the base rate stays the same.
"While the cost of fixed rate mortgages have continued to creep upwards, those consumers on discounted rates should not assume that as the bank base rate has remained unchanged, that their rates will also remain static," he warned.
"Customers of Norwich & Peterborough Building Society, Nottingham Building Society and Co-operative Bank on discounted deals will soon see rate rises with SVR rates increased by as much as 0.25 per cent."
Mr Cook said this scenario could affect almost a third of consumers who pay a lender's SVR and could result in a "hefty dent" of £31 per month to borrowers' disposable income.To read more about mortgages, click here.
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