Mortgage rates edged up by two lenders

Standard variable mortgage rates (SVRs) have been edged up by two high-street lenders following the decision by the Bank of England’s monetary policy committee (MPC) to increase the national base rate.

Both NatWest and the Royal Bank of Scotland have announced a rise of 0.3 per cent to the SVRs offered, taking the rate up to 7.44 per cent.

In addition, both lenders offer an offset flexible mortgage product which is to increase by 0.3 per cent to 6.2 per cent.

Each bank will apply the new rates from February 1st 2007, almost one month after the MPC voted to raise the base rate for the third time in six months.

August and November 2006 saw rate rises of a quarter of a percentage point each time.

This month, the base rate was increased to 5.25 per cent, which may not affect those with fixed-rate mortgages but could cause higher mortgage payments for homeowners with a tracker homeowner loan.

© Adfero Ltd

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