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BankruptcyNews
Junior Member
358 Posts |
 Posted - 15 May 2007 : 09:46:24
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Lenders move to raise their rates
Major lenders including the Nationwide, Cheltenham & Gloucester and Bradford & Bingley have raised mortgage rates.
The move follows the Bank of England's (BoE) decision to increase UK interest rates by 0.25% to 5.5%.
Several major mortgage providers including the big five High Street banks are expected to announce rate increases over the next few weeks.
However, savers may be cheered by some account providers being quick to raise their savings rates.
The BoE raised UK rates last Thursday.
Since then 13 mortgage providers have raised their rates, in all instances by the same amount as the BoE, according to financial information firm Moneyfacts.
In the past, banks and building societies have been criticised for raising mortgage rates at the earliest opportunity but failing to pass on the benefit to savers.
But this time around it seems savings account providers have acted quickly to raise rates.
In total 22 savings account providers have boosted rates since the BoE move.
"Most of the savings rates products that have moved are linked automatically to the BoE base rate," a Moneyfacts spokeswoman, said.
"Some account providers have moved a little more quickly than we would usually expect. However, many of the rate increases, although announced now, are not coming into force until June," she added.
Source: bbc.co.uk
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Lenders move to raise their rates
