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Coventry building society is also withdrawing rates for new residential and buy-to-let customers along with product transfer deals for existing customers. It is also suspending the sale of tracker deals indefinitely from 8pm tomorrow . In reality relatively few borrowers are on their lender’s SVR compared to fixed rates, as SVRs tend to be much higher than the average fixed rate deals in the market. Loughborough building society has announced the withdrawal of a selected range of its mortgage deals through brokers from the end of Monday . Coventry building society and a number of smaller lenders are increasing the cost of fixed rate mortgages for new and existing customers looking for a new deal, writes Jo Thornhill.

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According to Better, the mortgage broker, the average standard variable rate is currently 7.26percent. Lenders usually put up their SVRs in response to any Bank Rate rise. HSBC’s SVR will remain at 6.99percent, Santander at 7.50percent, Coventry building society at 6.99percent and Skipton building society at 6percent. The mutual says it has launched the offer to test whether lowering the cost of the loan will encourage homeowners to make their properties more energy efficient. Last month’s higher-than-expected inflation figures point to further interest rate rises for 2023.

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Childcare costs, which can run into thousands of pounds a year, have a significant impact on mortgage affordability. The moves come ahead of the Bank of England Bank rate announcement on Thursday this week. There is growing speculation that the Bank might hold the rate at 4percent, which would reduce the likelihood of recent mortgage rate falls being reversed. Many lenders are now pricing in a Bank rate ‘hold’ at 4percent by the Bank of England when it announces its latest interest rate decision on Thursday . The current average SVR of 7.15percent compares to an average of 3.88percent in December 2021, before the Bank of England Bank Rate started to climb.

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