One week on and the base rate affect has barely started
�Lisa Taylor, analyst at Moneyfacts.co.uk – the money search engine, comments:
“The latest base rate rise was almost a foregone conclusion; the only uncertainty was whether the rise would be a half or quarter percent. With consumers already having to contend with a 0.75% increase in the last nine months, the 0.25% will definitely be easier to swallow.
Savings
“Unlike the January rate increase which came out of the blue, providers have been able to plan for this latest rise. But still the savings market has been traditionally slow to react, with only 42 savings providers announcing changes to some or all of their savings range, and so far only 24 have applied the higher rates to their whole product range.
“As expected the first accounts to move are those directly linked to base rate, so any account which either tracks base or has a rate guarantee. Unusually a handful of building societies have been quick off the mark in announcing their changes, which usually filter through around the start of the next month once they have completed their board discussions.
“The fact that almost every company so far has passed on the full quarter point rise is a sign of the competitive nature of the savings market. But with over 80% of providers yet to make an announcement on their full range, consumers should perhaps wait a while before shopping around for a new savings account.
“While Anglo Irish Bank has only opted for a 0.20% rise, it must be noted that only a month ago they increased their rates by 0.10%. And both their Easy Access Deposit account and 7 Day Notice both pay market leading rates.
Mortgages
“Similarly mortgage lenders have been slow to amend their SVR rates, with almost 100 still to announce. Unsurprisingly all bar three of the increases have been for the full 0.25%, with only Scottish BS opting for a smaller rise of 0.20%.
“The exceptions are Intelligent Finance, which opted for a 0.45% rise and Standard Life Bank which increased by 0.30%. Although the Intelligent Finance increase may appear high, its product range is not linked to their SVR, so the only borrowers who will face this increase will be those paying the SVR as a revert-to rate after their deal expired. While the 0.30% rise from Standard Life Bank will impact not only on their reverts to SVR, but their full variable rate range too.
“The list also includes several of the largest mortgage lenders, including Nationwide BS and Halifax, whose SVRs stand at 6.99% and 7.50% respectively. With these early announcements, often seen as the benchmark within the industry, it shouldn’t be too long before we see more lenders following their lead.”
Details of mortgage and savings changes listed below.
Savings
Provider |
Rate Change |
WEF |
Accounts changed |
Anglo Irish Bank |
by 0.20% |
16.5.07 |
All but also went up 0.10% 18.4.07 |
Bank of Cyprus UK |
by 0.25% |
10.5.07 |
All |
Bank of Ireland (GB) |
by 0.25% |
11.5.07 |
All except Young Saver |
Barnsley BS |
by up to 0.30% |
2.6.07 |
All |
Beverley BS |
by 0.25% |
1.6.07 |
All |
cahoot |
by up to 1.40% |
21.5.07 |
All (only one account) |
Capital One Savings |
by 0.25% |
11.5.07 |
All |
Close Brothers |
by 0.25% |
10.5.07 |
Crystal only |
Clydesdale Bank |
by 0.25% |
11.5.07 |
Savings A/c Plus only |
Coutts & Co |
by 0.25% |
10.5.07 |
TOISA only |
Halifax |
by 0.25% |
11.5.07 |
Guaranteed Saver only |
Hanley Economic BS |
By 0.25% |
1.6.07 |
All |
Harpenden BS |
By up to 0.30% |
1.6.07 |
All |
Heritable Bank |
by 0.25% |
18.5.07 |
All |
Hoare & Co |
by 0.25% |
11.5.07 |
All |
Julian Hodge Bank |
by 0.25% |
15.5.07 |
All |
Icesave |
by 0.25% |
18.5.07 |
All (only one account) |
ING Direct (UK) |
by 0.24% |
1.6.07 |
Instant access account only |
Intelligent Finance |
by 0.25% |
12.5.07 |
All |
Kaupthing Singer & Friedlander |
by 0.25% |
14.5.07 |
All |
Laiki Bank |
By 0.25% |
10.5.07 |
All |
Leek United BS |
by 0.25% |
2.6.07 |
All |
Liverpool Victoria |
by up to 0.40% |
18.5.07 |
All |
Lloyds TSB |
by 0.25% |
10.5.07 |
Guaranteed Tracker only |
Mansfield BS |
by 0.25% |
11.5.07 |
2 Products |
Marks & Spencer Money |
by 0.25% |
11.5.07 |
All (only have ISAs) |
National Savings & Investments |
by 0.25% |
10.5.07 |
Direct ISA only |
Nationwide BS |
By up to 0.45% |
1.6.07 |
All |
Newcastle BS |
by 0.25% |
11.5.07 |
55 Bond & 55 ISA only |
Northern Bank (NI) |
by 0.25% |
11.5.07 |
All |
Northern Rock |
by up to 0.25% |
9.6.07 |
All except Instant Access |
Norwich Union |
by 0.25% |
10.5.07 |
All (only one a/c) |
Nottingham BS |
by 0.25% |
17.5.07 |
Postal Tracker 60 |
Post Office® |
by 0.25% |
4.6.07 |
All (only one a/c) |
Principality BS |
by 0.25% |
11.5.07 |
Base Rate Tracker Bond only |
Progressive BS |
by 0.25% |
1.6.07 |
All |
Sainsbury's Bank |
by 0.25% |
17.5.07 |
Internet Saver only |
Skipton BS |
by 0.25% |
14.5.07 |
Branch Access Issue 2 only |
Virgin Money |
by 0.25% |
17.5.07 |
All |
West Bromwich BS |
by 0.25% |
14.5.07 |
Base Rate Tracker accounts only |
Yorkshire Bank |
by 0.25% |
11.5.07 |
Savings A/c Plus only |
Yorkshire BS |
by 0.25% |
13.5.07 |
Variable Rate Bond 3 only |
Mortgages
|
New Customers |
Existing Customers |
||
Company |
Rate Change |
New Rate |
W.E.F |
W.E.F |
Barnsley BS |
0.25 |
7.49% |
11.5.07 |
1.6.07 |
Beverley BS |
0.25 |
6.69% |
15.5.07 |
15.5.07 |
Bradford & Bingley |
0.25 |
7.50 / 7.59% |
11.5.07 |
11.5.07 |
Bristol & West Mortgages |
0.25 |
7.59% |
15.5.07 |
1.6.07 |
Britannia BS |
0.25 |
7.20% |
14.5.07 |
1.6.07 |
Cheltenham & Gloucester |
0.25 |
7.50% |
14.5.07 |
1.6.07 |
Chesham BS |
0.25 |
7.45% |
14.5.07 |
1.6.07 |
Co-operative Bank |
0.25 |
7.49% |
14.5.07 |
1.6.07 |
Coventry BS |
0.25 |
7.59% |
1.6.07 |
1.6.07 |
Darlington BS |
0.25 |
7.57% |
16.5.07 |
1.6.07 |
Dudley BS |
0.25 |
7.49% |
1.6.07 |
1.6.07 |
Earl Shilton BS |
0.25 |
7.59% |
15.5.07 |
1.6.07 |
Edeus |
0.25 |
7.49% |
10.5.07 |
10.5.07 |
Egg |
0.25 |
6.49% |
14.5.07 |
1.6.07 |
First Active |
0.25 |
6.60% |
11.5.07 |
11.5.07 |
First Trust Bank (NI) |
0.25 |
7.55% |
11.5.07 |
25.5.07 |
Giraffe Money |
0.25 |
7.59% |
15.5.07 |
1.6.07 |
Halifax |
0.25 |
7.50% |
15.5.07 |
1.6.07 |
Heritable Bank |
0.25 |
7.24% |
14.5.07 |
14.5.07 |
Hanley Economic BS |
0.25 |
7.35% |
1.6.07 |
1.6.07 |
Intelligent Finance |
0.45 |
7.10% |
12.5.07 |
12.5.07 |
Leek United BS |
0.25 |
7.49% |
1.6.07 |
1.6.07 |
Lloyds TSB Scotland |
0.25 |
7.50% |
14.5.07 |
1.6.07 |
Loughborough BS |
0.25 |
7.15% |
16.5.07 |
16.5.07 |
Melton Mowbray BS |
0.25 |
7.49% |
11.5.07 |
1.6.07 |
Mortgage Express |
0.25 |
7.00 / 7.25% |
11.5.07 |
11.5.07 |
Nationwide BS |
0.25 |
6.99% |
1.6.07 |
1.6.07 |
Northern Bank (NI) |
0.25 |
7.55% |
11.5.07 |
11.5.07 |
Northern Rock |
0.25 |
7.59% |
12.5.07 |
1.6.07 |
Platform |
0.25 |
6.75% |
10.5.07 |
10.5.07 |
Portman BS |
0.25 |
7.49% |
15.5.07 |
1.6.07 |
Standard Life Bank |
0.30 |
7.06 / 7.26% |
17.5.07 |
17.5.07 |
Scottish BS |
0.20 |
7.19% |
16.5.07 |
2.6.07 |
The Mortgage Works |
0.25 |
7.49% |
15.5.07 |
1.6.07 |
The One Account |
0.25 |
6.60 / 7.45% |
11.5.07 |
11.5.07 |
West Brom for Intermediaries |
0.25 |
7.49% |
12.5.07 |
12.5.07 |
West Bromwich BS |
0.25 |
7.59% |
12.5.07 |
1.6.07 |
NOTES TO EDITORS:
Moneyfacts Group
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