Santander raises its tracker and standard rates by 25 basis points

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Santander for Intermediates says its tracker and sstandard vvariable reat will increase by 25 basis points, following the interest rate hike by the Bank of England yesterday.

The big bank says all mortgage trackers related to the the base rate will change automatically from the beginning of March, including his Ffollowed rate, which lifts at 3.75% from 3.50%.

He adds that Santander and Alliance & Leicester sstandard vvariable rare you going also go up by 25basis points at 4.74% of 4.49% since the beginning of March.

The lender says:If a client’s existing Santander mortgage is affected, they will receive a letter advising them of their new interest rate and new minimum monthly payment five days before their monthly payments change.

All tracking pricing and reversion pricing at his new business tracking and internal transfer products will increase in line with the base rate on Tuesday, February 8, adds the bank.

The move comes after the The Bank of England’s monetary policy committee raised its base rate to 0.5% from 0.25%to combat rising inflation.

Inflation currently stands at 5.4%, driven by rising gas and electricity costs, well above the Bank’s 2% target.

The Bank added that it expects the consumer price index for the cost of living to peak at 7.25% in April, about 2% higher than forecast in its November report.

This latest central bank hike follows an unexpected hike in December, when the key rate fell from a historic low of 0.1% to 0.25%.

Earlier this week, a Nationwide monthly survey showed house prices jumped 11.2% year on year in January.

Mutual said it was the best start to the year since 2005 and took the average house price across the UK to £255,556.

On a monthly basis, the building society’s report shows house prices rose 0.8% last month.

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