You are here: Home - Mortgages - Remortgage - News -

UPDATED: The lenders raising mortgage rates after 0.25% hike

0
Written by: Lana Clements
06/08/2018
Britain’s lenders are preparing to raise variable mortgage rates after the Bank of England upped the base rate to its highest level since 2009.

Skipton Building Society announced all its variable rate mortgages are to go up by 0.25%, after the base rate went from 0.5% to 0.75%.

The changes include the mutual’s Standard Variable Rate (SVR) and will take place from September 1, along with an increase on variable savings rates.

A Skipton spokeswoman said: “By passing on the base rate increase to both our variable rate borrowing and saving members, we’re seeking to strike the right balance for our wider membership.”

Other lenders are hiking base rate trackers and confirmed reviews of wider variable rates.

HSBC and RBS borrowers on tracker mortgages directly linked to the base rate are to see rates immediately go up by 0.25%.

Lloyds, Halifax, Santander and TSB base rate tracker customers will see a 0.25% increase take place in September.

Nationwide’s Base Mortgage Rate (BMR) and Standard Mortgage Rate (SMR) will increase to 2.75% and 4.24% respectively.  Its tracker mortgage rates will increase by 0.25%. All changes will come in from 1 September.

Accord Buy To Let mortgages that track the bank rate will be withdrawn tomorrow Friday August 3 at 6pm.

Coventry Building Society promised to announce any changes for existing borrowers by August 23 and pledged to give 48 hours’ notice of changes to new lending products.

A spokeswoman said: “Following the increase to the Bank of England Base Rate, we’re currently reviewing our variable rates and will give 48 hours’ notice of changes to new lending products. We’ll announce any changes for existing borrowers no later than 23 August.”

 

UK Finance said the majority of borrowers will be protected from any immediate effect from today’s base rate increase, as 95% of new loans are now on fixed rates with almost two-thirds of first-time buyers opting for two-year fixed rate products over the last 12 months.

Related: See YourMoney.com’s Base rate rise: what it means for your mortgage for more information.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Seven ways to get help with energy bills this winter

We knew today’s announcement was going to be painful, but it’s still a shock to the system. When this kick...

Flight cancelled or delayed? Your rights explained

With no sign of the problems in UK aviation easing over the peak summer period, many will worry whether holida...

Rail strikes: Your travel and refund rights

Thousands of railway workers will strike across three days this week, grinding much of the transport system to...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week