Two banks announce mortgage rate rise

Clydesdale and Yorkshire Banks have become the latest lenders to announce mortgage rate rises, affecting 30,000 customers.

The banks’ standard variable rates (SVRs) will rise from 4.59 per cent to 4.95 per cent from 1 May, meaning repayments will typically go up by less than £30 a month.

The rises mean someone on a £100,000 capital repayment 25-year mortgage will pay £581.68 a month, a monthly increase of £20.73 or nearly £250 a year.

This is the first change to the banks’ SVR in more than three years and reflects the increased cost of funding mortgages, the pair said.

RBS-NatWest confirmed last weekend that it is pushing up rates on two of its products – the Offset and The One Account – by 0.25 per cent, taking them to a rate of 4 per cent, affecting around 200,000 customers.