The Bank of England is set to raise interest rates for the 13th time in a row on Thursday, June 22, putting further pressure on mortgage holders in the UK. The bank is predicted to raise its base rate by at least a quarter of a percent, from 4.5% to 4.75% at noon on Thursday.
The move comes in the bank's bid to ease the cost of living crisis after Wednesday's announcement that consumer price index (CPI) inflation failed to fall as hoped in May, with the annual CPI rate stuck at 8.7% – well over the UK’s 2% target.
The bank has raised interest rates 12 times in a row in a bid to combat cost increases, with core inflation (stripping out food, energy, alcohol and tobacco) rising in May. Raising interest rates will hit borrowers' pocket at a time when mortgage holders are already facing sharp increases in costs if their current deal is ending.
The Resolution Foundation has calculated that people looking to remortgage their homes will pay an average £2,900 a year more from 2024. To get all the latest money-saving news straight to your inbox twice a week sign up here.
Read more: Eight ways to save hundreds on your water bills if you're in Wales
Most high street banks in the UK have raised their variable rates in recent times as the Bank of England raised its base rate. With so many changes happening, we've broken down all the current variable mortgage rates for some of the major banks at the moment.
Lloyds
On June 1, 2023 Lloyds Bank changed its lender variable rates because of an increase to its cost of lending. This came after the Bank of England raised its base rate to 4.5% on May 11.
Its current rates are as follows:
- Homeowner variable rate went from 7.74% to 7.99%.
- Standard variable rate went from 6.25% to 6.5%.
- Buy to let variable rate went from 8.59% to 8.84%.
The bank said that if your mortgage is on a lender variable rate, you will be told your new monthly payment before it is due. You can see how much your monthly mortgage payment is and find out what happens next by using its rate change calculator here.
Barclays
Barclays also updated its rates on June 1 this year. Its rates are as follows:
Homeowner variable rate is 7.99%.
- Standard variable mortgage rate is 6.50%.
- Buy to let variable rate is 8.84%.
- Follow-on tracker rate is 6.99%.
The bank said: "If your payments have increased and you feel that you’re unable to meet them, please contact our team on 0345 835 3374 , where full support will be available."
Halifax
As of May this year the Halifax variable rates were as follows:
- Homeowner variable rate is 7.99%
- Standard variable mortgage rate is 7.99%
- Follow-on tracker rate is 8.84%
HSBC
The current HSBC rates are as follows:
- Standard variable rate is 6.99%
- Buy to let rate variable rate is 7.35%
Nationwide
From July 1 this year Nationwide will be increasing its rates as follows:
- Standard mortgage rate will increase from 7.74% to 7.99%
- Base mortgage rate will increase from 6.25% to 6.50%
NatWest
The current NatWest mortgage rates are as follows:
- Standard variable rate is 7.49%
- Buy to let variable rate is 7.49%
Santander
From the start of June Santander made some changes to its rate but kept its standard variable rate the same.
- Standard variable rate is 7.5%
- Follow-on tracker rate went from 7.5% to 7.75%
Virgin Money
From July 1 the following Virgin Money mortgage rates will apply:
- Standard variable rate is 8.74%
- Buy to let variable rate is 8.94%
TSB
The current TSB variable rates are as follows:
- Standard variable rate is 6.50%
- Homeowner variable rate is 7.99%
- Buy to let variable rate is 8.84%
- Follow-on tracker rate is 6.99%
