Mortgage lenders hike charges

Updated 14.31 Fri May 11 2007
Keywords: bank of england, charges, rise, mortagage, lenders

Borrowers will be charged more by mortgage lenders following the latest Bank of England interest rate decision.

Nationwide Building Society, Portman Building Society and Royal Bank of Scotland's The One Account, all said their standard variable rates (SVRs) will shortly rise by 0.25 per cent in line with the base rate hike.

The hike in charges was widely expected following the Bank of England decision to move interest rates to 5.5 per cent - the highest in six years

The move was widely expected following the Bank of England's decision to move interest rates to 5.5 per cent - the highest in six years.

Other banks and building societies are likely to follow suit and raise their mortgage rates in the coming days.

Nationwide, the UK's largest building society, said that from June 1 its base mortgage rate will go up from 6.74 per cent to 6.99 per cent.

Households with a typical home loan of £100,000 will see monthly bills rise by just under £16.

When added to the cost to borrowers of the previous three interest rate hikes in August, November and January, it means mortgage repayments for the average homeowner will have increased by around £60.

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