Homedirect loanClydesdale Bank and HSBC raise rates ahead of BoE meeting

Clydesdale Bank and HSBC raise rates ahead of BoE meeting

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Clydesdale Bank has raised rates on a range of residential, buy-to-let and professional mortgages, while HSBC has lifted its residential standard variable rate.

The moves come as the Bank of England is widely expected to raise the base rate, by perhaps as much as 0.5%, for the sixth time in a row on Thursday. 

The Bank has lifted the base rate five times in a row since December from a historic low of 0.1% to 1.25%, a 13-year high, to combat rising inflation, which hit 9.4% in June, setting a fresh 40-year record.

Clydesdale says its core 65% to 95% loan-to-value two and five-year fixed-rate offers will increase by up to 15 basis points.

Its loans on £1m-plus properties from 65% to 85% LTV two and five-year fixed-rate products will rise by up to 10 basis points.

Professional and newly qualified professional rates will lift by up to 15 basis points.

Core BTL two and five-year fixed-rate deals will rise by up to 15 basis points. 

Its £1m+ BTL two and five-year fixed-rate offers will increase by up to 12 basis points.

The new rates take effect at 8pm today (1 August), but will appear on all sourcing systems and the lender’s online application system from 2 August. Its mortgage illustrator will be updated on the afternoon of 2 August. 

Meanwhile, HSBC says that it is raising its residential standard variable rate from 4.29% to 4.54% from today.

The high-street bank says any customers affected by this move will be notified of changes to their payments in writing.

It adds that there is no change to its buy-to-let standard variable rate, or any other rate at this time.

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