Mortgage interest rate

i_like_you

Can anyone give me some advice?

When the BOE increased their base rate by .25% in Aug, my lender (The Loughborough) increased my rate by .3%. Now that the BOE have increased the base rate again by another .25% I'm worried that my lender will increase my rate by another .3%, having then added .1% extra onto my interest rate and exeeding the BOE increase. I feel this is unfair especially when the big boys such as Halifax and Nationwide have mirrored the .25% increase. Surely interest is a 'charge' and what if anything justifies the extra .1% that my lender feels necessary to charge me for? Mortgages are very expensive and a lot of money is involved so can anyone give me some advice on this?

herbiesjp

AM i right in guessing your current deal is not a BoE tracker deal?

If it is not, then the lender can put its rates up to whatever level it wants unfortunately

i_like_you

Thanks for the advice. No I'm not on a tracker rate, just a discounted variable, looks like I'm open to the possible onslaught of rate increases then !!

meanmachine_2

First rule of mortgages - always get a base rate tracker, not a discounted variable.

The lender can raise their SVR whenever and by however much they like.

Still, you live and learn.