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Lenders still not increasing rates after base rate increase

Lisa Taylor, analyst at moneyfacts.co.uk, says: “Three weeks on from the MPCs decision to increase bank base rate, we are still waiting for 39% of mortgage lenders and 20% of savings providers to announce any increase to their rates.

“To date 61% of mortgage lenders have increased their SVR by between 0.20% and 0.34%, with 68% already charging the higher rate to their new customers. As expected within in this competitive market, the vast majority of lenders have passed on the 0.25% increase.

“The average of these new SVR rates currently stands at 6.58%, over 1.50% above bank base rate. So for any borrower paying a lender’s SVR this can be a very costly time, but we need to remember that these increases will also have an impact on any mortgage which rate is linked to an SVR, these normally being discounted deals.

“We are still waiting announcements from some of the larger lenders, namely HSBC and NatWest. The Woolwich announced this week a rise of 0.30% to 7.14%, but again, it does currently not offer any SVR linked products.

“We anticipate many lenders are waiting for December 1 to announce, so next week should be fraught with activity.”

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