The 0.25 per cent hike was made at the Monetary Policy Committee meeting on 16 March and represented the third increase since December. This has also brought the base rate back to the level it was between August 2018 and March 2020.
In response, Nationwide’s tracker mortgage rates will be impacted from 1 May. This will not apply to trackers reserved between 1 December 2004 and 16 February 2009 as the tracker floor is higher than the base rate.
The mutual said it was “working through” what this might mean for its standard mortgage rate (SMR) and base mortgage rate (BMR) but assured it would provide an update in due course.
Santander said the rates of its tracker mortgages would automatically rise to reflect the new rate and will apply from the beginning of April. Its follow on rate will increase from 3.75 per cent to four per cent.
All tracker rates and reversionary rates on its new business and internal transfer products will increase in line with the base rate on Wednesday 23 March.
Alliance and Leicester’s tracker mortgages will also be increased at the beginning of May while its standard variable rate (SVR) has gone up from 4.74 per cent to 4.99 per cent.
Skipton Building Society confirmed existing borrowers on tracker mortgages would also see an increase to their rate and this will happen within two weeks.
Its current base tracker products will be withdrawn on 21 March and replaced the following day.
This will not be passed on through the mutual’s SVR or mortgage variable rate (MVR).
Ian Cornelius, Skipton’s commercial director, said: “With households facing the highest inflation rate for many years and customers facing soaring energy bills, it’s our duty to help our customers during these challenging times.
“That is why we have taken the decision to hold our MVR/SVR rates at current levels – we believe it’s the right thing to do for our borrowers.”
Halifax said it will write to affected borrowers notifying them of any changes to their interest rates.
The Co-operative Bank said it will review its tracker mortgage rates and SVR and communicate any updates to borrowers.
