Which lenders are raising mortgage rates after the Base Rate increase?
Britain’s lenders are preparing to raise variable mortgage rates after the Bank of England upped the base rate to its highest level since 2009.
Skipton Building Society announced all its variable rate mortgages are to go up by 0.25%, after the base rate went from 0.5% to 0.75%.
The changes include the mutual’s Standard Variable Rate (SVR) and will take place from 1st September, along with an increase on variable savings rates.
A Skipton spokeswoman said: “By passing on the base rate increase to both our variable rate borrowing and saving members, we’re seeking to strike the right balance for our wider membership.”
Other lenders are hiking base rate trackers and confirmed reviews of wider variable rates.
HSBC and RBS borrowers on tracker mortgages directly linked to the base rate are to see rates immediately go up by 0.25%.
Lloyds, Halifax and Santander base rate tracker customers will see a 0.25% increase take place in September.
Nationwide’s Base Mortgage Rate (BMR) and Standard Mortgage Rate (SMR) will increase to 2.75% and 4.24% respectively. Its tracker mortgage rates will increase by 0.25%. All changes will come in from 1st September.
Accord Buy To Let mortgages that track the bank rate will be withdrawn tomorrow Friday August 3 at 6pm.
Coventry Building Society promised to announce any changes for existing borrowers by August 23 and pledged to give 48 hours’ notice of changes to new lending products.
A spokeswoman said: “Following the increase to the Bank of England Base Rate, we’re currently reviewing our variable rates and will give 48 hours’ notice of changes to new lending products. We’ll announce any changes for existing borrowers no later than 23 August.”
A Santander spokesman said: “When we review rates, we consider both the interest we charge for borrowing money, and the rate of interest we can offer on deposits.
“Following today’s increase in the Bank of England base rate, we are reviewing our variable products, and any changes will be communicated to customers.”
UK Finance said the majority of borrowers will be protected from any immediate effect from today’s base rate increase, as 95% of new loans are now on fixed rates with almost two-thirds of first-time buyers opting for two-year fixed rate products over the last 12 months.