Lenders 'increase borrowing rates'

Posted: 16 May 2007 09:31:00 GMT

A number of mortgage lenders have announced that they will raise their interest rates after the Bank of England (BoE) hiked the base rate up to 5.5 per cent last week.

A number of mortgage lenders have announced that they will raise their interest rates after the Bank of England (BoE) hiked the base rate up to 5.5 per cent last week.

Mortgage providers including Bradford & Bingley, Cheltenham & Gloucester and Nationwide have all increased the rates on their available offers to consumers.

According to the financial data firm MoneyFacts, 13 providers have raised the level of interest since the announcement last week from the Bank of England.

Nationwide, Portman Building Society and Royal Bank of Scotland have said that their standard variable rates will see an increase of 0.25 per cent.

"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," stated a spokeswoman at MoneyFacts.

Average repayments have gone up by £60 in the last year due to a series of rate rises, states the Liverpool Daily Post.

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