Co-operative standard variable mortgage rates raised for 54,000 mortgage holders.

The Co-operative has announced that its standard variable mortgage rates are to increase.

In a move that comes into effect on 01 May 2012, around 54,000 Co-operative mortgage holders will be affected by the lender increasing its SVR by 0.5 per cent to 4.74 per cent.

The Co-operative join a long line of lenders who have increased their standard variable mortgage rates in the last few weeks. The bank advises that the increase has been announced because of changing mortgage market conditions and increased funding costs.

The lender released a statement advising that the average monthly repayment increase for SVR customers would be in the region of £15. The statement went on to say that Co-operative's SVR mortgages will continue to offer customers a range of mortgage features and benefits, such as unlimited overpayment and a penalty free switch to another deal.

As more lenders including the Bank of Ireland, Halifax, Clydesdale and now the Co-operative increase their SVRs, some borrowers are left worrying that tightened lending criteria could mean they are now unable to remortgage.

The Co-operative advises that it recognises these concerns and has said a new 5 year fixed deal will be launched specifically aimed at helping existing customers who have a SVR mortgage for 90 per cent LTV or above.

Any mortgage holders concerned about increasing standard variable mortgage rates are advised to contact Deal Direct. Our skilled advisers will search the market on your behalf to find a new deal for you to switch to.