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MORTGAGES

Abbey wasted no time in becoming the first lender to pass on the full rate hike to borrowers. Its standard variable rate will rise 0.25pc to 6pc from February 9 for new borrowers and March 1 for existing customers.

Barclays and its mortgage bank Woolwich also passed on the full amount. The standard variable rate will rise from 5.79pc to 6.04pc from 1 March, for both new and existing borrowers.

Nationwide will raise its base mortgage rate by 0.25pc to 5.14pc from the beginning of March.

First Direct announced it would also raise the rate of its off-set mortgage, which tracks the Bank of England's base rate, by 0.25pc to 5pc with immediate effect. It added that its other mortgage rates were under review.

Sainsbury's Bank will raise its preferential rate by the full quarter point to 5.20pc from the beginning of March.

Northern Rock will increase its loyalty rate by the full 0.25pc, to 5.74pc, from 1 March. The SVR will also go up by 0.25pc to 5.99pc, with effect from February 9 for new business and March 1 for existing borrowers.

Other lenders including Halifax, Royal Bank of Scotland, Egg and Alliance & Leicester all have their rates under review.

Marks & Spencer set a positive trend by announcing it will increase the rate on its new cash mini Isa from 4.25pc to 4.5pc, following the base rate rise. The Isa is available from February 16.

Tesco Personal Finance passed on the full rate rise of 0.25pc to its Instant Access Savings customers, effective from March 1. The rates will rise to between 2.85pc to 4pc, depending on the balance of the account.

Lloyds TSB customers will receive a 0.25pc increase on their Plus current accounts from March 1. All new Plus customers who pay in more than pounds 2,000 per month, will now receive 4.75pc. Those crediting their account with pounds 1,000 or more will receive 4.08pc AER.

All existing Plus customers, paying in more than pounds 2,000 a month will receive 3.75pc. Those crediting their account with pounds 1,000 or more will receive 3.08pc.
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Publication:The Journal (Newcastle, England)
Date:Feb 6, 2004
Words:371
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