Lenders quick to pass on rate rise

Mortgage lenders were quick to pass on the interest rate rise to borrowers.

The decision by the Bank of England's Monetary Policy Committee to increase rates by 0.25% to 4% will cost homeowners with an average £65,000 mortgage about £10 a month.

If lenders pass on the full quarter point increase, monthly repayments on a £65,000 loan will increase to £418.79 from £408.91, based on a new rate of 6%.

The following lenders have changed their mortgage rates:

:: Abbey has increased its standard variable rate by the full 0.25% to 6% from February 9 for new borrowers and March 1 for existing ones.

:: Barclays and the Woolwich, which are part of the same group, have both raised their standard variable rates from 5.79% to 6.04% from March 1 for both new and existing borrowers.

:: Nationwide Building Society has moved its base mortgage rate up by 0.25% to 5.14% from the beginning of March.

:: First Direct is increasing its off-set mortgage rate, which tracks the Bank of England's base rate, by 0.25% to 5% with immediate effect. Its other mortgage rates are under review.

:: Sainsbury's Bank is raising its preferential rate by the full quarter point to 5.20% from the beginning of March.

:: Northern Rock is increasing its standard variable rate from 5.74% to 5.99% from February 9 for new customers and March 1 for existing ones. Customers who qualify for its loyalty discount will have a new standard variable rate of 5.74%.

Most watched News videos