The change will only affect borrowers who took out a mortgage prior to September 2007 and have part of their mortgage balance on SVR and another part of their balance subject to an Early Repayment Charge.
Halifax’s SVR itself will remain at 3.50% and customers may not necessarily have to pay the full 3.75%. Halifax will provide notice should a customer’s payments have to increase.
The change will take effect from 31 March and all customers affected by the change will be given notice this week.
A spokeswoman at Halifax said: “We have written to all affected customers to explain that, from 31 March 2012, we are amending the cap on the Halifax SVR from 3% above base rate to 3.75% above base rate.
“This change does not affect the amount customers pay and the SVR remains at 3.50%.
“We continually assess the many dynamic factors that impact mortgage pricing and have reviewed the current cap level to ensure that it remains suitable in the current market conditions.”
