Santander has made product changes for existing customers in light of the Bank of England’s decision yesterday to increase the base rate.
Yesterday the Monetary Policy Committee (MPC) voted by a majority of 6-3 to increase the bank rate by 0.25 percentage points, to 1.25%. The members in the minority voted to increase the bank rate by 0.5 percentage points, to 1.5%.
Santander’s tracker products will increase by 0.25% from July, but customers’ payments won’t increase until August.
This includes the follow-on rate, which will rise to 4.50%.
The lender’s standard variable rate (SVR) will increase to 5.49% from August, but customers’ payments won’t increase until after 26 August.
Alliance & Leicester tracker products will go up 0.25% from August and customers’ payments will increase from August.
In addition, Alliance & Leicester’s SVR will increase to 5.49% from August and customers’ payments will increase from August.
It also announced that all tracker rates and reversion rates on new business and internal transfer products will increase in line with the base rate on 21 June.