The four banks putting up mortgage rates within DAYS – and how to avoid paying hundreds more
MORTGAGE costs will rise for hundreds of thousands of homeowners after the Bank of England put up interest rates to a 13 year high.
The central bank hiked the base rate by 0.25 percentage points - and many banks and building societies will be passing that on to borrowers.
Homeowners on variable and tracker mortgages will be first to feel the effects of the rate rise - the Bank's fifth consecutive hike.
You won't pay more if you're on a fixed rate mortgage deal, as you've agreed your rate for a certain period of time.
But after your deal ends, you could find mortgage rates are higher than when you last fixed.
For homeowners with a tracker mortgage linked to the base rate, your repayments will rise, but when exactly this happens depends on your lender's terms and conditions.
Read more in Money
Some mortgage lenders have said they will increase standard variable rates (SVR), while others are still "reviewing" theirs after the Bank of England's (BoE) decision.
SVRs are generally higher than fixed rate deals, so if you're on one then you're likely already be paying more than you need to.
And if your bank is putting up the SVR, you'll soon be paying even more unless you find a cheaper deal, which could cost you hundreds of pounds a year extra.
Here we explain what each bank is doing and how to get the best deal.
Most read in Money
Aldemore
Aldemore said it's Standard Variable Rate (SVR) mortgages, also known as a Managed Rate, will be increasing by 0.25 percentage points to reflect the BoE's change.
That means its rate will go up from 5.48% to 5.73% from June 23.
On a £400,000 mortgage this increase will add £48 a month to repayments - or £576 a year.
Barclays
Barclays said it has also increased its Standard Variable Rate mortgages by 0.25 percentage points.
The change will come into effect for customers on the Barclays Standard Variable Rate from August 1.
That means the SVR will go from 5.49% to 5.74%.
On a £250,000 mortgage this increase will add £30 a month to repayments - or £360 a year.
Its Buy to Let SVR will also increase from 5.99% to 6.24%.
Leeds Building Society
Leeds Building Society's website said there would be no increase in its Standard Variable Rate or Buy to Let Variable Rate mortgages.
However, tracker mortgage rates will increase depending on their terms and conditions.
We asked the building society for comment.
Lloyds/Halifax/Bank of Scotland
Lloyds confirmed its Standard Variable Rates for mortgages and savings rates remain under review.
Tracker mortgages will, depending on their terms, increase in line with the Bank of England Base Rate, from August 1.
Nationwide
A spokesperson for the bank said it was still deciding what rates would be for BMR and SMR's (Standard and Base Mortgage Rates).
They added any changes would be announced "in due course".
Rates on tracker mortgages held by existing customers will automatically go up by 0.25% from August 2022 however.
Natwest
Natwest said it was "continually" keeping variable mortgage rates under review but has not confirmed an increase.
Santander
Santander's Standard Variable Rate mortgages will increase by 0.25 percentage points from 5.24% to 5.49% from the start of August.
The bank tracker mortgage products linked to the base rate will increase the same amount from the start of July.
This includes the Follow-on Rate (FoR), which will increase to 4.50%.
On a £150,000 mortgage this increase will add £18 a month to repayments - or £216 a year.
Skipton
A Skipton Building Society spokeswoman said it would not be increasing its Standard Variable Rates.
However, its tracker mortgages will be increasing by 0.25%.
TSB
TSB's standard variable rate mortgages will be going up from 3% to 3.25% from July 9.
This means if your Direct Debit leaves your account on or after August 1, it will be at the new, higher amount.
Virgin
Virgin said it would keep its Standard Variable Rate mortgages under review, but confirmed its tracker mortgages would increase from July 1.
Some 80% of its mortgage customers are on fixed-rate loans, it added.
Tips for getting the best mortgage deal
There are lots of factors to consider when trying to find the best mortgage deals.
Usually, if you have a larger deposit, you will get a lower rate on your mortgage.
And a change to your credit score or a higher salary could also help you access better rates.
Fixed-rate mortgage deals are mostly cheaper than a Standard Variable Rate as well.
One little-known trick if you are on a fixed-rate mortgage which is coming to an end could save you thousands as well.
Typically, mortgage providers will let you lock into a new deal three months - or in some cases six months - before your current one ends.
It means homeowners can secure the best rates now, before interest rates go up.
Leaving a fixed deal early will usually come with an early exit fee, but it could be worth paying to leave the deal, cost-depending.
To find the best deal, use a to see what's available.
You can also go to a mortgage broker who can compare for you, but it may cost you.
However, it might also save you thousands on a mortgage overall so could be worth a short-term expense.
There are also fees for the mortgage, although some have no fees at all.
Alternatively, you can add it on to your mortgage, but you will have to pay interest on it. This will cost more in the longer term.
You can use a mortgage calculator to see how much you could borrow.
READ MORE SUN STORIES
Remember, that you'll have to pass the lender's strict eligibility criteria too, which will include affordability checks, and looking at your credit file.
You may also need to provide documents such as utility bills, proof of benefits, your last three month's payslips, passports and bank statement.
We pay for your stories!
Do you have a story for The Sun Online Money team?
Email us at [email protected]