Bank of Ireland customers have been notified of its intention to increase the SVR on its UK residential mortgage book.
The hike in SVR will affect around 100,000 borrowers.
The change will be implemented in two stages.
From June 2012 the SVR will increase by 1% from 2.99% to 3.99%.
This will be followed by a further 0.5% increase in September 2012 from 3.99% to 4.49%.
Post Office customer will not be affected by the increase.
This is the first SVR increase the Bank of Ireland has made to its UK residential mortgage book since August 2007.
Bank of Ireland said it was necessary for Bank of Ireland to increase its SVR as the cost of funding mortgages for UK lenders had increased significantly in recent years.
Bank of Ireland has provided a dedicated support line for any customer concerned about the impact of the increase on them.
Bank of Ireland refers UK customers to Bath-based broker London & Country.
David Hollingworth, associate director of communications at London & Country, said that London & Country was just one of the options Bank of Ireland borrowers could pursue.
He said: “The letters that will have gone to borrowers will instruct borrowers to talk to their adviser. In some cases borrowers will have an issue where their broker has moved on or the borrower can’t remember who their broker is. Bank of Ireland then offers a number of brokers as options and London & Country is one of them.
“In the past Bank of Ireland has run pilot schemes to deleverage their mortgage book. They have previously waived early repayment charges and also offered incentives to move away.
“London & Country has helped Bank of Ireland with those schemes in the past and this is just a continuation from that relationship.”
