Rate changes still unresolved after three weeks

29 August 2006
Following the Bank of England's decision to raise interest rates by a quarter point over three weeks ago, many of the larger banks and financial institutions are yet to announce rate changes.

So far, approximately 80 per cent of standard variable mortgage rates have been changed but only around half of institutions offering savings accounts have upped their rates in line with the Monetary Policy Commission's decision.

Andrew Hagger, the head of news and press at financial advice website Moneyfacts.co.uk, has noted that many mortgage rate increases are also doing customers a disservice.

"We have seen a number of providers take the opportunity to make an increase greater than 0.25 per cent, with Furness Building Society NatWest and RBS increasing by 0.3 per cent and Standard Life by 0.31 per cent," he said.

Mr Hagger also stated that the Moneyfacts average standard variable rate for mortgages currently stood at 6.57 per cent.

As far as savings go, many of the major institutions are yet to unveil their decisions, prompting Mr Hagger to say that "it could be another hectic week ahead" if several announcements were looming from giants such as Barclays, NatWest and Nationwide.

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