Lenders raise mortgages in response to interest rate hike

11 November 2003
Major mortgage lenders are passing on the Bank of England's quarter per cent rise in interest rates to homeowners.

Britain's biggest lender Halifax has announced that its standard variable rate would rise from 5.5 per cent to 5.75 per cent on December 1st. Tracker mortgage customers will also see an increase in rates from the same date.

The Bank of England's Monetary Policy Committee opted last week to raise the base rate of interest for the first time in four years. It now stands at 3.75 per cent.

Abbey has also announced that its standard variable rate mortgage would increase to 5.75 per cent, while its savings rates would also rise by an average of 0.21 per cent.

HSBC, First Direct and Nationwide Building Society are also increasing their base mortgage rates.

Changes mean that repayments on a £60,000 mortgage will increase by around £9 a month to an average of £377.