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Friday, 14 January, 2000, 19:37 GMT
Homeowners hit by rate rise

halifax The Halifax is the UK's biggest mortgage lender


Homeowners are counting the cost after three of the UK's biggest mortgage lenders raised their rates by 0.25%.

The Property Maze
Halifax is upping its standard variable mortgage rate to 7.49% from February 1.

Nationwide is putting up its variable rate to 6.95%, also from that date.


nationwide The Nationwide raised rates first

And Cheltenham & Gloucester, Britain's third biggest lender, said it would also increase its variable mortgage rate to 7.49%.

The rises follow an increase in base rates of 0.25% on Thursday.

The Nationwide was the first of the UK's large lenders to raise its mortgage rate after the base rate rise.

A quarter-point rise on a 60,000 Nationwide repayment mortgage will see monthly repayments go up by 8.95, from 401.79 to 410.74.

Rivals review rates

Richard Branson's Virgin One mortgage division said on Thursday evening that it would be passing on the rise.

Abbey National is reviewing its rates and is widely expected to match the rise. Other lenders may follow suit, too.

The Bank of England raised base lending rates by 0.25% to 5.75% on Thursday.

One reason was to try to dampen down the spiralling rise in property prices, by making mortgages more expensive.

The rate hike is the third in five months but property experts believe it is unlikely to have much effect on the housing market.

Nationwide and Halifax both pledged to raise rates for savers.

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See also:
13 Jan 00 |  Business
Interest rates rise 0.25%
13 Jan 00 |  Business
House price rises spreading
25 Nov 99 |  Business
Nationwide builds mortgage share

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