As you’ve probably heard by now, last Thursday the Bank of England hiked its base rate by 0.25% to 5% a year. Naturally, some lenders have already sprung into action by raising the interest rates which they charge borrowers.
In particular, HBOS (Halifax/Bank of Scotland), the UK’s largest mortgage lender, has announced that its standard variable rate (the rate paid by all borrowers who don’t have a special-rate deal) is to rise to 7% a year. For new borrowers, this rate change takes effect immediately; for existing borrowers, it happens on 1 December….
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