After the Bank of England’s interest rate hike on Thursday, some high street lenders have again been quick to pass on the increase to their mortgage customers but many have been less keen to boost savings rates at the same time.
Alistair Wilson, head of retail platform strategy at Zurich, said it could take months before savers see the impact of the rate hike “as with last November’s quarter of a per cent increase, which has only resulted in an average 0.07 per cent rise on easy access accounts.” HSBC said its tracker mortgages will go up 0.25 per cent on Friday to reflect the base rate while its other mortgage and savings rates will be reviewed.
A spokesperson for HSBC said its savings rates were “not directly linked to the Bank of England base rate”, but said customers will be informed of the outcome of the review “at the earliest opportunity”. Virgin Money has increased the rate on its tracker mortgage by 0.25 per cent. RBS, which owns both NatWest and Ulster Bank, has raised the interest rate on its rate-linked products by 0.25 per cent and said it is reviewing its variable rate products. An update will be provided “in the near future”. Lloyds Banking Group, which includes Halifax has not yet made any announcement on its variable rate but said: “The 0.25 per cent Bank of England base rate increase will form part of the ongoing rate reviews across our product ranges.”
Barclays said variable mortgage rates will increase to 5.24 per cent from 4.99 per cent from 1 September. Buy-to-let variable rates will rise to 5.74 per cent 5.49 per cent on the same date and trackers will rise 0.25 per cent. Santander said it is reviewing all variable rates. All tracker mortgage products will move in line with the change and base-rate linked 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.
All savings products linked to the base rate will move in line with the increase from the end of August. A Santander spokesperson 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.”
TSB said it was reviewing its variable interest rates on mortgages and will make an announcement as soon as possible. Yorkshire Building Society will raise variable savings rates by 0.25 per cent on variable savings accounts from 14 December. “As a mutual which is owned by its members, it is our priority to deliver highly competitive and sustainable rates for both our savers and borrowers,” the lender said. Nationwide has not yet announced rates, while the Post Office will raise its variable mortgage rates 0.25 per cent from 1 September.