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Alliance & Leicester ups interest rates

UK lender Alliance & Leicester has increased the interest charges on its mortgage and savings products by 0.25%.

The move follows the Bank of England’s base rate increase of 0.25%, taking it from 4.50% to 4.75%.

The lender will increase its standard variable mortgage rate by the full 0.25% to 6.84%, while also adding the full 0.25% increase to a number of of its savings accounts, which include some direct accounts, ISAs and its EasySaver branch account.

The changes will come into effect from September 2, 2006.

Many of A&L’s rivals have been slow to react to the base rate rise, the first change in the rate for 12 months, with some of the biggest players in the market: Woolwich, HSBC and NatWest, yet to make any changes.

In contrast to this however, eight lenders have increased their interest rates by more than the base rate adjustment. Britannia and Nationwide are among this group, according to reports from The Scotsman on August 21.