Rates hiked at Santander

Ben Southwood
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BORROWERS who have a mortgage at Santander face higher repayments from today, when the lending giant raises its standard variable rate (SVR).

Santander will raise its SVR 0.5 percentage points, to 4.74 per cent, blaming increasing funding costs, which it says drove competitors’ SVRs up five months ago. It also laid the blame on liquidity, capital and funding regulations which made banking more expensive.

This increase will add £26 per month to repayments on a £100,000 mortgage, hitting borrowers just as increased quantitative easing and the Funding for Lending Scheme were supposed to ease lending conditions.