Santander’s standard variable rate (SVR) and all tracker deals linked to the base rate will increase by 0.25% in December. It takes the lender’s SVR to 4.74% – the same level as its Alliance and Leicester brand, which is not set to change.

Santander also raised returns on selected saving products, but maintained the 1.5% rate on its 123 Current Account.

The Bank of England raised rates for the first time in a decade last week.

Little hesitation from lenders

The move prompted lenders to make quick changes to mortgage rates, but some providers have come under fire for acting more slowly on savings deals.

Barclays, HSBC, RBS, TSB and Yorkshire Building Society are among the providers that have announced changes to mortgage rates following the Bank of England’s hike.

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Reza Attar-Zadeh, head of customer at Santander, said: “Following last Thursday’s decision to increase the Bank of England Base Rate, we have carefully considered our options, and have sought to achieve a balance between rates we offer our savers and borrowers.”