A sizeable number of homeowners will see mortgage payments rise after the Bank of England hiked the base rate by 0.25 per cent today, while savers will be hoping for some much-deserved respite as their rates rise.
Those on fixed rate mortgages won’t see a rise, while base rate trackers will automatically go up, but borrowers on standard variable rates must wait to see what their bank or building society does.
Meanwhile, savers are also keenly following announcements to search out news of rate rises on their accounts.
Here is what banks and building societies have said so far:
Some mortgage borrowers will be looking at rising monthly loan payments after the Bank of England hiked the base rate by 0.25 per cent today.
Yorkshire Building Society
The society said it will give a boost to its savers by adding the full bank rate increase of 0.25 per cent to all variable rate accounts.
Borrowers on a Yorkshire, Chelsea or Norwich & Peterborough standard variable rate mortgage will see their rate increase by 0.25 per cent to 4.99 per cent.
However, the group is reducing its Accord Mortgages SVR from 5.34 per cent to 4.99 per cent, meaning borrowers on its SVR will see a reduction in monthly repayments.
Mike Regnier, chief executive at Yorkshire Building Society, said: ‘It has been a tough few years for savers, so we’re delighted to be able to pass on the full bank rate increase.’
It will be unwinding changes made to interest rates on its variable rate savings, mortgage and base rate linked credit card accounts – putting customers back into the position they were at in August 2016 before the Bank of England reduced rates by 0.25 per cent.
Interest rates on TSB’s variable rate mortgage and base rate linked credit card accounts will increase by 0.25 per cent.
Interest rates on variable rate savings accounts will increase by 0.15 per cent. TSB said it previously protected savers from the full base rate decrease.
The bank’s tracker mortgages will see an increase on Friday, in line with the base rate increase. Other mortgage and savings rates will be reviewed in line with the Bank of England’s decision.
A statement from HSBC said: ‘As tracker mortgages are directly linked to the base rate, these will go up in line with base rate as of tomorrow.
‘On average, those with an HSBC tracker mortgage with £100,000 balance would see a monthly increase of £12 per month and an increase of £24 for those with a £200,000 outstanding balance.’
On savings accounts, HSBC said: ‘While our savings rates are not directly linked to the Bank of England base rate, we will be reviewing these in light of this decision and other factors, and will make our customers aware of changes in savings rates at the earliest opportunity.’
Nationwide Building Society
Nationwide said earlier this week that, in the event of a 0.25 per cent base rate rise, the society would be increasing savings rates by 0.25 per cent for all members who received a reduction of 0.25 per cent as a result of the bank rate reduction in August 2016, including the society’s most popular products.
It said in the event of a bank rate rise, the society’s base mortgage rate (BMR) and standard mortgage rate (SMR) products will increase.
It said these rates would remain competitive in the market at 2.5 per cent and 3.99 per cent respectively.
The Barclays Bank Base Rate and the Barclays Standard Variable Rate will both increase by 0.25 per cent.
This will come into effect for customers with Barclays Bank Base Rate Tracker mortgages and customers on the Barclays Standard Variable Rate from December 1.
Barclays is currently reviewing its savings rates and will provide more information in due course.
Rates on some Halifax and Lloyds variable rate mortgages will increase by 0.25 per cent from December 1. All customers who will see a change will be contacted to let them know what this means for them.
Details will also be available to customers via the bank’s websites, through online banking or in branch. The group’s savings rates are currently under review, and any changes will be made in due course.
The Royal Bank of Scotland, NatWest and Ulster Bank North base rate has increased on Thursday from 0.25 per cent to 0.5 per cent, in line with the Bank of England base rate increase.
For those customers on base rate-linked products, it will increase their rate to 0.5 per cent.
The bank said: ‘Existing customers with fixed-rate products will not see a change in their rate during their fixed-rate period.
‘We are currently reviewing whether we will make any changes to variable-rate products and will provide an update in the near future.’
The bank said it is reviewing the pricing of all of its variable rates and will communicate these to customers in line with their terms and conditions.
Santander said all tracker mortgage products linked to the base rate will move in line with the change. These new rates will be communicated to customers and used to calculate mortgage repayments from the start of December.
All loans to UK businesses linked to the base rate will move in line with the change and in accordance with the terms of the deal. New rates will become effective from December 1.
All savings products linked to the base rate will move in line with the increase from the start of December.
A Santander spokesman said: ‘When we review rates, we consider both the interest we charge for borrowing money, and the rate of interest we can offer on deposits.
‘Following today’s increase in the Bank of England base rate, we are reviewing our variable products, and any changes will be communicated to customers.’
The society will pass the base rate increase on in full for all of its on-sale savings accounts. The changes will mean the rate on its cash Lifetime Isa will increase to 0.75 per cent.
In addition it will move to having none of its on-sale and off-sale accounts paying less than 0.5 per cent. The savings rate increases will be effective from December 5.
The society said it has no plans to increase its standard variable rate or its mortgage variable rate for mortgage customers.
Skipton’s head of products Kris Brewster said: ‘We are acutely aware of the impact the past decade has had on our saving members.’
Coventry Building Society
It will apply the full 0.25 per cent base rate rise to all variable rate savings accounts, with effect from December 1.
The society will also apply the base rate increase to applicable variable rate mortgages from December 1.