Natwest has increased the rate of its two-year tracker mortgage by 0.25 per cent, to reflect the higher Bank of England base rate.

From 20 December, the 75 per cent loan to value (LTV) product will have a rate of 1.04 per cent.

Natwest is among the many lenders who said there would be changes to their tracker mortgage rates and standard variable rates (SVR) after the Bank of England increased the base rate from its record low of 0.10 per cent to 0.25 per cent.

This was the first increase to the base rate in three years.

Virgin Money

Virgin Money has also made changes to its tracker mortgages in light of the base rate change.

The two-year tracker with no valuation or legal fees is now priced at 1.89 per cent at 65 per cent LTV, the 75 per cent LTV has a rate of 3.04 per cent and the 85 per cent LTV deal is priced at 3.84 per cent.

The product transfer range which allows borrowers to transfer to a fixed rate deal with Virgin Money at any time without incurring fees has also increased.

At 65 per cent LTV, the two-year tracker has a rate of 1.9 per cent while at 95 per cent LTV the equivalent has a rate of 3.4 per cent.