Britain's major banks are yet to pass on the Bank of England’s base rate rise to savers - but most have already raised mortgage rates, figures show.
An analysis of more than one hundred banks and building societies found that only one lender has increased interest rates across all of its easy access, variable savings accounts.
These accounts typically give you freedom to access your savings whenever – although some are currently paying as little as 0.1%.
Just Suffolk Building Society has passed the full 0.15 per cent rise to savers across all variable accounts since the base rate rise, according to the analysis by Moneyfacts. NS&I is the second in the market to pass on the full increase.
Lenders started increasing rates on many fixed rate mortgage products in November in anticipation of the Bank’s announcement.
On December 16 when rates rose, Lloyds and Halifax all announced increases to their standard variable mortgage rates by the full 0.15 per cent.
Nationwide increased rates on some of its fixed loans by as much as 0.45 percentage points, three times the Bank of England's 0.15 per cent increase. All 238 of its mortgages are also rising.
However, the bank said it was “still working through what the bank rate increase means for savers” and that it would “announce any changes in the near future”.
HSBC is one of few lenders that have not raised their SVT mortgages - with some rates falling instead. It told The Mirror savings are also “under review”.
Santander said all tracker mortgages will rise by 0.15% but only its Rate for Life and Good for Life savings accounts are linked to the base rate. These will also rise 0.15% but savers can't currently open one.
Barclays said its standard variable mortgage would rise to 4.74% and its trackers would increase this month.
In the same period, the bank increased its instant cash ISA from 0.05% to 0.1%.
NatWest, Lloyds and Halifax also have plans to increase the cost of bank rate-linked mortgages in February.
A rise in mortgages marks the latest blow to households who are bracing for a cost of living squeeze this year – with some analysts warning rising food inflation, energy and higher NI taxes will leave the average household £1,200 worse off in the next 12 months.
Boris Johnson is due to hold talks with the Chancellor on how to support the households worst hit by the energy bill crisis. But there are fears that emergency support could be too little too late.
It is understood that an expansion of the warm homes grant could be pushed forward, as this will target the lowest income households – a shake-up of the scheme would open it up to around 800,000 more people.
However, the Treasury is understood to be pushing back on a VAT cut on energy bills, despite Boris Johnson pledging it in his own Brexit campaign. Removing the levy would save households 5% a year.
Rachel Springall at Moneyfacts, said: “Some borrowers may have already seen their variable rate rise on their mortgage since the base rate increase last month. Base rate rises typically get passed onto revert rate deals and base rate tracker deals, but borrowers could save a substantial sum by switching to a fixed mortgage and as it stands lenders are still fighting for new business.
“Borrowers sitting on their standard variable rate (SVR) may see their rate rise within a month or perhaps within the next three months, depending on their lender.
“The difference between the average two-year fixed mortgage rate and SVR stands at 2.06%, and the cost savings to switch from 4.40% to 2.34% is a difference of £5,250 over two years* approximately.
“A rise of 0.15% on the current SVR of 4.40% would add £408 approximately onto monthly repayments over two years.
“However, as we have seen in the past, a base rate rise does not immediately get passed onto savers and those who have seen a smaller rise will likely be disappointed. It may be a few months yet for the rise to trickle down to savers who have a variable rate deal, but there is also no guarantee the rate will be passed onto them in full, or at all.
“Should savers see 0.15% passed onto them, it would mean receiving £30 more a year in interest based on a £20,000 investment.
“The biggest high street banks are unlikely to be matching base rate on their easy access accounts, so savers would be wise to reconsider their loyalty.”
“Getting a better savings deal also does not just come down to switching from one account to another, it can mean re-thinking any savings goal and whether access is required in the short-term.
“Regular savings accounts inspire the savings habit, easy access accounts are flexible and fixed bonds are more suited for lump sums.
“There are also Lifetime ISAs for those looking to buy a home or save in a separate pot for their retirement, the Government will give it a boost.”
See our guide on the best savings accounts, here.
