From October Santander mortgage borrowers, on a standard variable rate mortgage, will see their monthly payments increase as the bank raises it rate by 0.5% to 4.74%.
This increase will raise the monthly payment on a £100,000 mortgage by £26 and is in response to rising costs in providing mortgages, according to Santander, with no further increases planned.
This change applies to Santander mortgage customers as well as those acquired under the Abbey for Intermediaries brand, but not those of Alliance & Leicester.
Santander will also be changing the cap on their standard variable rate from the 24th September from 3.75% above the Bank of England base rate to 4.99%.
The increase in the standard variable rate follows similar moves by Halifax and Clydesdale Bank in the spring.
What to do if this affects you
Well depending on your circumstances you might be able to remortgage onto a better deal. But speak to a good mortgage broker who can search the whole of the market for you. If you don't already have one then click on the button below for more help.