Millions of homeowners in the UK are facing higher mortgage repayments after several lenders, including Clydesdale, Yorkshire, Halifax and Co-operative raised their interest rates by as much as 0.5 percentage points for existing borrowers.
More than 800,000 mortgage customers of Halifax, the biggest home loan lender in the UK, will see increased monthly payments after the bank raised its standard variable rate (SVR) from 3.5 to 3.99 percent.
Several experts have warned that the latest rate hike will put the squeeze on household incomes.
“The increases will put some households under pressure,” said Ray Boulger from mortgage advisory firm John Charcol.
He noted that ‘mortgage prisoners’ will be affected the most, especially those who have little equity on their property or who have interest-only mortgages.
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