Landlords who are considering mortgage options may be interested in reports that eight lenders have increased their standard variable rates (SVRs) since April last year.

Moneyfacts.co.uk released a report which said that the rise is in spite of a lack interest rates remaining at relatively low levels.

But editor at WhatMortgage Ben Wilkie said this is not surprising and many lenders do not use the Bank of England rate as a marker.

The main reason for the higher rates is more likely to be a rise in costs, which is being passed on to the customers, he explained.

Furthermore, Mr Wilkie predicts that SVRs are likely to rise again in the next few months.

He claimed: "It always starts off [when] a couple of them stick their heads above the parapet and once that has happened …then all the other lenders will do it as well."

A change in government is not likely to have a profound effect on the situation, he predicted.

On January 7th, the Bank of England said the base rate would remain at 0.5 per cent. It is now the lowest rate since 1694, when the Bank began.

Written by Mark GarnerADNFCR-2002-ID-19550449-ADNFCR

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