22 June: Lenders Keep Powder Dry After Bank Rate Hike
Lenders are expected to react in the coming days to the Bank of England’s latest rate rise by increasing the cost of their mortgage deals and standard variable rates. But some early movers are showing restraint in welcome news for borrowers, writes Jo Thornhill.
The Bank increased its main lender rate from 4.5% to 5% earlier today. With some exceptions, most variable rate and tracker mortgage holders will feel the effect from their next scheduled payment.
Those on fixed rates will face higher rates when their current arrangement expires.
In a welcome move for some of its variable rate customers, Santander says it will not increase its standard variable rate (SVR), currently at 7.5%. Customers on tracker rate deals will see their rate rise from the start of August.
Skipton building society says it is increasing its mortgage variable rate (MVR) but only by 0.25 percentage points (not the 0.5 percentage point increase announced by the Bank of England today).
Source: www.forbes.com
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