Standard Life Bank is increasing its standard variable rate from 4.85% to 5.10% with effect from November 19, following the 0.25% base rate increase.
Anne Gunther, chief executive of Standard Life Bank, says: “It is important to put this rise into context. It does not mean misery for consumers. We expect the Bank of England base rate to go up to 5 or 5.5% by the end of 2004. When compared with base rates over the past 15 years, this figure is still at the lower end of the scale.
“But those consumers who are worried are those carrying a burden of expensive short-term debt. It is sensible to sort out finances as quickly as possible by remortgaging to a flexible mortgage at a cheaper interest rate.
“This allows homeowners to wipe out credit card debt or personal loans while at the same time saving money on regular monthly mortgage payments.”