The Bank’s Monetary Policy Committee voted on Thursday to boost base rate from one to 1.25 percent. Several lenders confirmed that they might be passing it on. But HSBC went further, increasing its fixed-rate mortgages by between 0.45 and 0.5 percentage points just before the official announcement.
A spokesman insisted the rises were “not in anticipation” of the Bank’s decision “and there are a lot of various factors taken into consideration”.
Financial information company Moneyfacts said Lloyds Bank had announced even greater rises on fixed rate mortgages last week.
Around 10 lenders unveiled rate rises ahead of the Bank’s move.
Santander and Nationwide said their base rate-linked trackers will go up by 0.25 percent. TSB and Barclays said variable rate products will rise.
Rachel Springall, from Moneyfacts, said what lenders charge for fixed-rate mortgages “have been going up for quite just a few months now”.
One reason was reduced competition between firms, she added.
Nevertheless, savers are unlikely to learn.
People squirrelling money away in the course of the lockdowns mean most big banks are awash with funds and are in no hurry to reward savers.
Anna Bowes, of Savings Champion, said: “Some providers have taken advantage of the situation.”
Krishnapriya Banerjee, managing director at Accenture’s UK banking practice, said homeowners were paying tons of of kilos more for brand new mortgages but “banks have yet to pass on higher rates of interest to savers”.
Danielle Richardson, from Which? Money, said: “Rates of interest for savers have been going up recently, albeit from record lows, but there isn’t a guarantee that your provider will pass on the most recent increase. Take time to research the market when you’re searching for essentially the most competitive deals.”
