Mortgages rise above base rate

The Co-operative Bank, Alliance & Leicester and RBS Natwest high street banks have all increased their mortgages rates by more than the 0.25 per cent rise in the base rate introduced by the Bank of England in January.

While the Co-operative standard variable rate (SVR) has risen by 0.35 per cent, reaching 7.24 per cent, Alliance & Leicester raised its SVR by 0.3 per cent to hit 7.39 per cent and RBS Natwest added 0.3 per cent, taking its SVR to 7.44 per cent.

SVR is the standard rate a customer’s mortgage reverts to after the time-limit on a fixed-term mortgage deal such as a tracker expires.

Mortgage SVR rates rose by an average of 0.51 per cent over 2006, Moneyfacts.co.uk recently revealed – and adjustments to SVRs following interest rate hikes can accelerate their growth.

Over the last six months, when the Bank of England has raised the base rate three times, 13 mortgage lenders, including the Bank of Scotland, Britannia and the Co-operative Bank, have put up their SVR by more than the 0.75 per cent total increase in the base rate, Savills Private Finance has shown.

Tags: mortgage lenders, bank of scotland, cent total increase, bank of england, Mortgage loan, interest rate hikes, mortgages rates