Halifax increases SVR cap

Tuesday, 28th February, 2012

Halifax has increased the cap on its standard variable rate from 3% above base rate to 3.75% above base for certain existing borrowers. The lender has written to 40,000 affected customers this week to inform them of the change, which will take effect from March 31. Halifax’s SVR remains at 3.50% and the change to the cap only affects borrowers who took out a mortgage before September 2007 and are on an SVR but have another part of their balance subject to an early repayment charge. A spokeswoman for Halifax says: “We have written to all affected customers to explain that from March 31 2012, we are amending the cap on the Halifax SVR from 3% above base rate to 3.75% above base rate. “This change does not affect the amount customers pay, and the SVR remains at 3.50%. We continually assess the many dynamic factors that impact mortgage pricing, and have reviewed the current cap level to ensure that it remains suitable in the current market conditions.” If you are affected by these changes please contact us on 0845 658 6060 / 01483 233014 and we will be happy to review your circumstances.