What UK’s lenders have said about their mortgage and savings rates

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Banks and building societies have been outlining how they plan to apply the base rate increase from 0.5 per cent to 0.75 per cent.

While deals directly tied to the base rate will change, several providers have said they are still mulling over how they plan to apply the base rate increase to other products – leaving many savers holding their breath.

Here is what the major providers have said so far.

Canary Wharf is home to some of the UK's banks, which will be deciding what to do with the rates on the mortgage and savings products in the coming days.

Canary Wharf is home to some of the UK's banks, which will be deciding what to do with the rates on the mortgage and savings products in the coming days.

Canary Wharf is home to some of the UK’s banks, which will be deciding what to do with the rates on the mortgage and savings products in the coming days.

RBS – The Royal Bank of Scotland, NatWest and Ulster Bank North base rate has also increased from 0.5 per cent to 0.75 per cent. For those customers on base rate-linked products, it will increase their rate to 0.75 per cent.

Around two thirds of its mortgage customers are currently on fixed-rate products and so will not see their rate change during their fixed-rate period.

RBS said it is reviewing whether it will make any changes to variable rate products ‘and will provide an update in the near future’.

Lloyds Banking Group (includes Halifax) – All products that track the Bank of England base rate will be increased by 0.25 per cent from September.

Lloyds said: ‘The 0.25 per cent Bank of England base rate increase will form part of the ongoing rate reviews across our product ranges.’

Santander – It is reviewing the pricing of all of its variable rates that are not linked to the base rate.

All tracker mortgage products linked to the base rate, including Santander’s follow-on rate, will move in line with the change. These new rates will be communicated to customers and used to calculate mortgage repayments from the start of September.

All 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 spokesman 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 – A TSB spokesperson said: ‘Following the Bank of England’s decision to increase the base rate by 0.25% to 0.75%, we are currently reviewing our rates. 

‘We know customers will have many questions about how this base rate change will affect them and we will be making an announcement as soon as possible.’

HSBC – Tracker mortgages will go up on Friday in line with the base rate. Other mortgage rates and savings will be reviewed in light of the Bank of England’s decision.

A spokesman for HSBC UK said: ‘While our savings rates are not directly linked to the Bank of England base rate, we will be reviewing these in light of this decision and other factors, and will make our customers aware of changes in savings rates at the earliest opportunity.’

He said: ‘Tracker mortgage customers who wish to get a bespoke idea of what a rate rise means for their individual circumstances should click on our interest rate change calculator.

‘We will be reviewing other variable rate mortgages, including our standard variable rate, following this decision, and we will communicate to those customers impacted, with notice given in line with their mortgage terms and conditions.’

Barclays – A Barclays spokesperson said: ‘Following today’s announcement by the Monetary Policy Committee to increase the Bank of England Base Rate by 0.25 per cent, Barclays Mortgages has reviewed the Barclays Standard Variable Rate and this will increase by 0.25 per cent. 

‘This will come into effect for customers on the Barclays Standard Variable Rate from 1st September 2018.’ 

Nationwide Building Society – Nationwide said it is working through what this may mean for its savings, mortgage and banking members and it will be communicating any changes in due course.

Yorkshire Building Society – A spokeswoman for the Yorkshire said: ‘We will take time to consider how to adjust our variable rate mortgage and saving accounts.

‘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.’

Coventry Building Society – Following the increase to the Bank of England Base Rate, we are reviewing our saving and mortgage rates. We’ll announce our decision no later than the 23 August, with the intention of applying changes from 1 September. 

Skipton Building Society – Kris Brewster, Skipton’s head of products, said: ‘Following today’s base rate increase, Skipton will be passing on in full the increase to all of our on-sale variable rate savings and mortgage accounts. 

‘By passing on the base rate increase to both our variable rate borrowing and saving members, we’re seeking to strike the right balance for our wider membership.’ 

OneSavings Bank – A spokesperson said: ‘Following the recent change to the Bank of England base rate, we are currently reviewing both mortgage and savings product ranges and will announce any changes to products in due course.’

Clydesdale Bank –  A spokesperson said: ‘Following the Base Rate announcement by the Bank of England Monetary Policy Committee at noon today, we can confirm that all our Base Rate linked products will be changed with effect from Friday 3rd August 2018. 

‘We are now reviewing the rates on all other products and will confirm any changes as soon as details of the new rates are available.’

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