UPDATED: The lenders raising mortgage rates after 0.25% hike
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Accord Buy To Let mortgages that track the bank rate will be withdrawn tomorrow Friday August 3 at 6pm.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.