High street lenders increase mortgage rates by more than Bank of England

Borrowers are seeing their costs rise but savings rates remain low

Central bank move will have an immediate impact on the 1.9 million borrowers on standard variable rate or tracker mortgages (PA)

Some lenders have hiked their mortgage rates by twice as much as the Bank of England base rate while returns on savings accounts have remained close to zero in many cases.

HSBC increased prices on fixed-rate mortgages by between 0.45 and 0.5 percentage points this week, well in excess of the quarter per cent increase to the base rate. Nationwide also raised its rates by as much as 0.4 percentage points.

The Bank of England's latest move will have an immediate impact on the 1.9 million borrowers on standard variable rate or tracker mortgages, which move in line with the base rate.