HSBC last of big six lenders to raise variable mortgage rates after Bank of England hike
HSBC is the last of the big six lenders to raise its variable mortgage rates after the Bank of England upped the base rate earlier this month.
The bank’s Standard Variable Rate (SVR) is to rise by 0.25% to 4.19% with effect from 1st September.
At the same time, HSBC is raising its buy-to-let SVR 0.25%, taking it to 5.25%.
It comes after the monetary policymakers raised the base rate 0.25% to 0.75%.
HSBC said it will write to impacted customers.
Tracie Pearce, HSBC UK’s head of retail, added: “HSBC’s mortgage rates remain some of the lowest on the market, including our Standard Variable Rate, maintaining our commitment to offer great value for all new and existing customers.”
Since the Bank of England hike, Halifax, Lloyds, Nationwide and RBS have all raised their SVR by 0.25% to stand at 4.24%.
Santander and Barclays have also raised their SVRs by the same amount to 4.99% and 5.24% respectively.
The increases provide further impetus for borrowers sitting on SVRs to remortgage to a better deal.
Lenders recently agreed to help so-called mortgage prisoners, who no longer meet affordability requirements, to move to cheaper deals.