The Bank of England has announced its 13th consecutive interest rate hike on Thursday, June 22, placing mortgage holders in the UK under further financial strain.
The rate was forecasted to rise by a quarter of a percent rise, from 4.5% to 4.75%, but instead the rate increased to 5%. The last time the base rate was at 5% or higher was in 2008.
This decision follows Wednesday’s news that the consumer price index (CPI) inflation remained unexpectedly high in May, with the annual CPI rate at 8.7% — significantly exceeding the UK’s 2% target.
Borrowers are likely to feel the pinch as higher interest rates coincide with already rising costs, particularly for those whose current mortgage deal is expiring.
Research from the Resolution Foundation estimates that remortgaging homeowners could face an additional £2,900 annual expense from 2024.
Variable rates of numerous high street banks in the UK have seen a rise following the Bank of England’s recent base rate increasea so Wales Online has compiled a list of some of the current rates.
Lloyds Bank altered its lender variable rates in response to the base rate increase to 4.5% on May 11, 2023. Current rates are:
- Homeowner variable rate: 7.99%
- Standard variable rate: 6.5%
- Buy to let variable rate: 8.84%
Barclays also updated its rates:
- Homeowner variable rate: 7.99%
- Standard variable mortgage rate: 6.50%
- Buy to let variable rate: 8.84%
- Follow-on tracker rate: 6.99%
Halifax offers the following rates:
- Homeowner variable rate: 7.99%
- Standard variable mortgage rate: 7.99%
- Follow-on tracker rate: 8.84%
HSBC’s rates include:
- Standard variable rate: 6.99%
- Buy to let rate variable rate: 7.35%
- Nationwide will be increasing its rates from July 1:
- Standard mortgage rate: 7.99%
- Base mortgage rate: 6.50%
NatWest mortgage rates are:
- Standard variable rate: 7.49%
- Buy to let variable rate: 7.49%
Santander has also adjusted some of its rates:
- Standard variable rate: 7.5%
- Follow-on tracker rate: 7.75%
Virgin Money will implement these rates from July 1:
- Standard variable rate: 8.74%
- Buy to let variable rate: 8.94%
TSB’s rates are:
- Standard variable rate: 6.50%
- Homeowner variable rate: 7.99%
- Buy to let variable rate: 8.84%
- Follow-on tracker rate: 6.99%
This article was crafted with the help of AI tools, which speed up Express.co.uk’s editorial research. A content editor reviewed this content before it was published. You can report any errors to [email protected].
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