Mutual societies raise mortgage rates
Saturday 08 August 1998
Bradford & Bingley is boosting rates by a quarter of a point to 8.7 per cent after holding back for two months after the last rise in base interest rates.
The B&B rise comes into immediate effect, boosting the cost of the average variable mortgage of pounds 50,000 by around pounds 10 a month.
The society's announcement was closely followed by a larger increase from Nationwide, which will boost its variable rates from 8.1 to 8.5 per cent from 1 September. Yorkshire building society raised its rates on Tuesday from 8.25 to 8.5 per cent.
In the run-up to Nationwide's crucial vote last month on whether to become a bank, societies had promised to hold their rates until 1 August.
The rises come in the middle of one of the slowest months of the year for mortgage sales, and follow the decision not to raise rates by the Bank of England's Monetary Policy committee on Thursday.
Variable mortgages with Nationwide and Bradford & Bingley are still significantly cheaper than those from former societies which have converted to banks, most of which have headline mortgage rates of 8.95 per cent.
The building societies have sought to maintain their competitiveness in the savings market, boosting rates on deposits while holding them back on mortgages.
Bradford & Bingley has calculated that it returned pounds 85m of profits to its savers and borrowers last year.
- 1 What happens to your body when you give up sugar?
- 2 Drugs Live cannabis trial: Hash is less harmful than any other drug, expert claims
- 3 Turkish Airlines flight TK 726 crash-lands on Nepal runway amid dense fog
- 4 Penis size: Study revealing 'what's normal' sends international media into meltdown
- 5 Have sex with your iPad thanks to the new sex toy no-one asked for
Turkish Airlines flight TK 726 crash-lands on Nepal runway amid dense fog
Ayesha Ali death: Mother and her girlfriend found guilty of manslaughter of eight-year-old
George Clooney and Amal fail to get special treatment at New York restaurant
Cindy Crawford 'un-PhotoShopped' viral Marie Claire image was doctored, claims photographer
'A girl is more responsible for rape than a boy': The statement that shocked the world... except India
Durham Free School: 'Creationism taught at' free school facing closure
Nearly 100,000 of Britain's poorest children go hungry after parents' benefits are cut
Ukip would cut billions from Scottish budget to fund English tax cuts
End of the licence fee: BBC to back radical overhaul of how it is funded
Ukraine crisis: Top Chinese diplomat backs Putin and says West should 'abandon zero-sum mentality'
Boris Nemtsov shot dead: Outspoken Putin critic who had expressed fears for his life is killed near the Kremlin
iJobs Money & Business
£25000 - £30000 per annum + benefits: Ashdown Group: A global leader operating...
Voluntary post, reasonable expenses reimbursed: Reach Volunteering: Would you ...
£36,000 - £40,000: Christine McCleave: Are you looking for a new opportunity a...
£15000 - £18000 per annum: Recruitment Genius: This is a great opportunity for...