moneysupermarket.com: Standard Life raises SVR

Commenting on the decision by Standard Life to raise the Standard Variable Rate (SVR) on their mortgage range by 0.15 per cent, Louise Cuming, head of mortgages at moneysupermarket.com, said: “Standard Life is the first lender to put their head above the parapet and acknowledge the need for action to protect their profitability in the current environment. This is a brave move, the reaction to which will be closely monitored by the bigger mortgage players. Standard Life is pushing the boundaries and traditionally, once one lender is brave enough to venture into potentially unpopular waters, others follow. This move is reminiscent of fee increases – the first time fees moved into four figures, there was a huge outcry, but fees of even five figures are now commonplace.

“Our advice to homeowners is sit tight and watch this space, as it’s increasing evidence that the mortgage industry is moving away from being movements in base rate by the MPC.”