Bank of Scotland and TMB increase their SVR's
The Bank of Scotland and The Mortgage Business have increased their standard variable rates from 4.84% to 4.95% with effect from November 1 2011.
Both brands are owned by Lloyds Banking Group and they no longer accept new mortgage business.
A spokesperson for Lloyd's group is quoted as saying: "Bank of Scotland and TMB have written to customers to inform them that their standard variable rates are increasing by 0.11%.
"The 0.11% increase in rates equates to an average change of around £10 a month for customers. This change reflects both an increased cost of funding and the higher capital costs of operating these mortgages."
Three-month Libor affects the pricing of variable rate mortgages and it has been creeping up. It is now at the highest level seen since July 2009.
Up to 175,000 mortgages customers will see their monthly repayments increase.
20 October 2011
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