Co-op Bank customers face mortgage rate rise

mortgage payments

mortgage paymentsHow would your household's budget cope with a sudden rise in your mortgage costs?

Around 54,000 people will soon be forced to deal with this conundrum head-on, as the Co-operative Bank has announced plans to increase its lending costs.

From the beginning of May, the mutual has announced that it intends to increase its standard variable mortgage rate by 0.5% to 4.74%.

This means the typical mortgage payment will become around £15 more expensive each month.

The typical borrower, with 11.5 years left on their deal and a remaining balance of £48,000, could see their monthly payments increase from around £440 to £455 in light of the changes.

The Co-operative Bank is not the only lender to announce rate hikes in recent times. Clydesdale and Yorkshire banks, RBS-Natwest and Halifax have also increased their rates over the last few weeks.

The rate rise planned by the Co-operative Bank will come into force despite the fact that the Bank of England's base rate remains at its record low level of 0.5%.

Check out this guide to finding the best mortgage deal for your family's needs.