Most big lenders to pass on base rate rise

Houses, house, property, monopoly

Most high street lenders have already revealed plans to pass on the Bank of England’s base rate rise, some just minutes after it was announced.

First out of the gates was Nationwide Building Society, which announced it was passing on the increase to its variable rates less than ten minutes after the Bank raised base rate.

Earlier in the week the lender had confirmed it would raise its savings rates and variable mortgage prices if base rate rose 0.25 per cent.

Nationwide maintains that even with the rise, its base mortgage and standard mortgage rates  are competitive, at 2.5 per cent and 3.99 per cent respectively.

Lloyds confirmed that its variable rate mortgages would increase by 0.25 per cent from 1 December.

Yorkshire Building Society – which also owns the Chelsea and Norwich & Peterborough brands – said it would also be increasing its SVR by 0.25 per cent to 4.99 per cent.

TSB also confirmed it is increasing its standard variable mortgage products by 0.25 per cent, as did Coventry Building Society, and Coventry for intermediaries.

Again, these changes will be effective from 1 December.

Royal Bank of Scotland – which owns NatWest and Ulster Bank North – confirmed that its tracker or base-rate linked products would rise by 0.25 per cent.

However, the firm said no decision had been made yet on raising its standard variable mortgage rate, currently 3.75 per cent.

HSBC also confirmed that its tracker mortgages will be increased by a quarter per cent from Friday.

Barclays has also said that it will pass on the changes from 1 December.

The firm’s base rate will rise from 0.25 per cent to 0.5 per cent.

Barclays’ SVR will increase from 4.74 per cent to 4.99 per cent.

The company is increasing its buy-to-let SVR from 5.24 per cent to 5.49 per cent.

Exceptions

However, a small number of lenders are bucking this trend.

Accord Mortgages will align its SVR to the rest of the Yorkshire Building Society group, whom it is owned by. This means it SVR will reduce by 0.35 per cent.

Elsewhere, Skipton Building Society said it would be keeping its variable rate mortgages on hold, and said it had no plans to raise them in future.

This also applies to its two lending subsidiaries Amber Homeloans and North Yorkshire Mortgages.

Despite keeping mortgage rates on hold Skipton did say it would be passing on this rate rise to its savers, although this won’t be effective until 5 December.

Between four and five million household in the UK are on a standard variable mortgage rate or tracker rate. This is around half of all households with a mortgage.

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