Lenders have been slow to adapt their SVRs, and fixed rates have been hit hard since the change in the base rate rise last week, says moneyfacts.


Lisa Taylor, analyst at moneyfacts.co.uk, comments on the changes seen so far in the mortgage market:

"Mortgage lenders have been slow to amend their SVR rates, with around 100 still to announce. Unsurprisingly all bar two of the increases so far has been for the full 0.25%. The exceptions are Harpenden BS, which opted for a 0.20% rise on both its mortgage rate and savings. And Chorley & District BS increasing its SVR by 0.35%. "

"This rise could be particularly painful for anyone coming off a two year deal hoping to remain on a new fixed rate. Two years ago, one of the best deals available was at 4.47% with a fee of £399; today a similar deal with Portman BS would be 5.34%, a 0.87% difference. For an average repayment mortgage of £150K (over 25 years), this would mean you would have to find an extra £74 a month."

"Not only have we seen fixed rates increasing, some lender are combining this with fee increases, while other are using increased fees and keeping the rate unchanged. Examples include Abbey who have increased fees increased on selected two-year fixed rates from £200 to £999."

"Moneyfacts highlights some of the best fixed rate deals still available: Chelsea BS and Bradford & Bingley offers a two-year fixed 4.99%; and Cheshire BS offers a fixed-rate of 5.15% until November 2009."