Banks and building societies set out plans following base rate increase

Banks and building societies have set out how their customers will be affected following the rise in the Bank of England base rate from 0.25% to 0.5%. Here is what they have said:

Thursday, 2nd November 2017, 1:06 pm
Updated Tuesday, 12th December 2017, 10:04 am
The governor of the Bank of England Mark Carney

:: Yorkshire Building Society - The society says it will give a boost to its savers by adding the full bank rate increase of 0.25% to all variable rate accounts.

Borrowers on a Yorkshire, Chelsea or Norwich & Peterborough standard variable rate (SVR) mortgage will see their rate increase by 0.25% to 4.99%.

However, the group is reducing its Accord Mortgages SVR from 5.34% to 4.99%, meaning borrowers on its SVR will see a reduction in monthly repayments.

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Mike Regnier, chief executive at Yorkshire Building Society, said: "It has been a tough few years for savers, so we're delighted to be able to pass on the full bank rate increase."

:: TSB - It will be unwinding changes made to interest rates on its variable rate savings, mortgage and base rate linked credit card accounts - putting customers back into the position they were at in August 2016 before the Bank of England reduced rates by 0.25%.

Interest rates on TSB's variable rate mortgage and base rate linked credit card accounts will increase by 0.25%.

Interest rates on variable rate savings accounts will increase by 0.15%. TSB said it previously protected savers from the full base rate decrease.

:: HSBC - The bank's tracker mortgages will see an increase on Friday, in line with the base rate increase. Other mortgage and savings rates will be reviewed in line with the Bank of England's decision.

A statement from HSBC said: "As tracker mortgages are directly linked to the base rate, these will go up in line with base rate as of tomorrow.

"On average, those with an HSBC tracker mortgage with £100,000 balance would see a monthly increase of £12 per month and an increase of £24 for those with a £200,000 outstanding balance."

On savings accounts, HSBC said: "While our savings rates are not directly linked to the Bank of England base rate, we will be reviewing these in light of this decision and other factors, and will make our customers aware of changes in savings rates at the earliest opportunity."

:: Nationwide Building Society - Nationwide said earlier this week that, in the event of a 0.25% base rate rise, the society would be increasing savings rates by 0.25% for all members who received a reduction of 0.25% as a result of the bank rate reduction in August 2016, including the society's most popular products.

It said in the event of a bank rate rise, the society's base mortgage rate (BMR) and standard mortgage rate (SMR) products will increase.

It said these rates would remain competitive in the market at 2.5% and 3.99% respectively.

:: Barclays - A Barclays spokesman said: "Following the decision by the Bank of England to increase its base rate, we are currently reviewing our rates for customers and clients who borrow and save with Barclays, and we will be able to provide more information in due course."

:: Lloyds/Halifax - It said mortgage products that track the base rate will go up from December 1. It said the base rate forms part of its ongoing rate reviews across product ranges.