48 lenders hike mortgage rates

MORE than half of lenders have already passed on the recent interest rate hike to mortgage customers.

It means that borrowers on their bank’s standard variable rate (SVR) will see bills shoot up. Since the Bank of England hiked base rate to 0.75 pc last month, 48 out of 81 lenders plan to increase their SVR.

A further 29 have yet to confirm if they will pass on the rate rise, while four have said they won’t. Average SVR is 4.84 pc, says data analysts Moneyfacts. Kent Reliance, part of One Savings Bank, has one of the highest SVRs, which rose from 6.08 pc to 6.33 pc on September 1. A borrower with a £150,000, 25-year loan pays £997 a month, up from £974 previously.

Borrowers with a 40 pc deposit could switch to HSBC’s 1.49 pc twoyear fix at £599 a month after paying a £999 fee. Kent Reliance says most of its customers are not on its SVR.