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HSBC unveils SVR hike after base rate rise


HSBC is one of the last high street lenders to announce that it will be increasing its standard variable mortgage rates by 0.25 per cent.

The decision follows the recent Bank of England rise in base rate.

HSBC’s residential SVR will be increased from 3.69 per cent to 3.94 per cent, while its buy-to-let SVR will be increased from 4.75 per cent to 5 per cent.

First Direct, the bank owned by HSBC is also raising its residential SVR by the same margin, to 3.94 per cent.

All these changes will be effective from 1 December, and will apply to both new and existing customers.

At the start of November the Bank of England raised the Base Rate by 0.25 per cent, to 0.5 per cent – the first rise in interest rates for more than a decade.

Most high street lenders were quick to announce that mortgage rates would be moving in line, with some lenders making this announcement within minutes of the BoE’s decision.

However, some have been slower out of the blocks. Last week RBS announced that it would be raising SVR, but by just 0.24 per cent. This applies to both RBS and NatWest customers.

Barclays, Santander, Nationwide Building Society, Yorkshire Building Society and TSB have all confirmed that their SVRs will increase by 0.25 per cent.

HSBC’s UK head of retail, Tracie Pearce says: “Our mortgage rates remain some of the lowest on the market, including our SVR, maintaining our commitment to offer great value for all new and existing customers.”



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