A handful of crafty mortgage lenders have been sneaking in higher rate increases under cover of the Bank of England's recent rate rise. We grass on them!
As always, the banks have been swift to pass on the Bank of England's recent 0.25% rate rise to those with mortgages but haven't been quite as quick to hand it on to savers. Quelle surprise!
However, some lenders have taken the opportunity to sneak in even higher rate rises. Perhaps they didn't think we'd notice the larger than expected rise in standard variable rates but thanks to the eagle eyes of those at Moneyfacts, we can name the culprits:
| Lender | New SVR | Increase |
|---|---|---|
| Britannia BS | 6.45% | 0.35% |
| Harpenden BS | 5.76% | 0.27% |
National Counties BS | 6.84% | 0.35% |
Nationwide BS | 6.24% | 0.35% |
RBS IP NatWest | 6.89% | 0.30% |
RBS IP Royal Bank of Scotland | 6.89% | 0.30% |
Ulster Bank (NI) | 6.82% | 0.27% |
West Bromwich BS | 6.84% | 0.30% |
However, even including the increases, the rates charged by the Britannia, Harpenden and Nationwide Building Societies are still below the average standard variable rate of 6.55% for all lenders.
Nevertheless, if you're currently paying your lender's standard variable rate then, unless you're on an extended tie-in, you should really be looking for a better deal anyway. It's never going to be the cheapest deal on the market so if you're paying it then you're effectively subsidising all the other borrowers who are taking advantage of any cut-price special offers.
There are plenty of discounted and fixed-rate mortgages around charging less than 5% so it seems a bit idiotic to pay more than you need to.
As it happens, only half of the UK's mortgage providers have announced changes to their SVR so there will invariably be more to come if your lender has so far stayed silent on the matter.
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