Halifax, the UK's biggest mortgage lender will raise it's SVR from the May 1st from 3.50 per cent to 3.99 per cent.Halifax said it had made this decision because of the higher cost of raising funds for mortgages from both savers and the financial markets.
The increase will add about £300 a year to mortgage payments for someone with a £100,000 mortgage.
Last week RBS said that it would raise its SVR rates from 3.75 per cent to four per cent on three of its mortgage products.
A spokesman from the Halifax said: "The change acknowledges that the cost of funding a mortgage in today's market remains significantly higher than the longer term average.".
Halifax says that customers who wish to transfer their SVR balance to a new Halifax product or a different lender will not incur an early repayment charge.
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