Lenders set to raise rates again following base rate hike
The Bank of England's Monetary Policy Committee has finally voted to raise base rate ten years after the last increase.
UK interest rates were cut from 0.5% to 0.25% in August 2016 and have not risen since July 2007.*
Over the last two weeks many banks and building societies have raised their mortgage rates in anticipation of a base rate rise.
NatWest, Skipton Building Society, TSB, Barclays and Accord Mortgages have all raised rates typically by up to 0.2%. Nationwide Building Society was one of a limited number of lenders to buck the trend and lower its ten-year fixes by 0.5%.
Aaron Strutt, product director at Trinity Financial, says: "Over the next few days lenders are likely to raise the price of their fixed and tracker rate mortgages. Nationwide has already announced it will increase its standard variable rate by 0.25% and its tracker rates will also rise.
"Lenders have been providing incredibly low rates for years and this change does not mean the end for super-cheap mortgages. Rates are likely to be marginally more expensive, but they will still offer great value for money. Few people could have predicted the base rate would be kept at its record low of 0.25% for quite so long."
*Source: Bank of England
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