Santander has stressed it will not raise its standard variable rate after a number of its competitors raised their rates.
Earlier this month, Halifax told 850,000 of its customers their SVR will increase from 3.5 per cent to 3.99 per cent on May 1, to align the rate with its homeowner variable rate for new customers. Prior to this, the lender increased its SVR cap from 3 per cent above base rate to 3.75 per cent above base rate.
Following the Halifax announcement, Royal Bank of Scotland increased rates for 200,000 of its offset and One Account customers by 0.25 per cent to 4 per cent.
Yesterday, Bank of Ireland announced it has notified customers its SVR will increase by 1.5 per cent to 4.49 per cent, from 2.99 per cent, for 100,000 of its UK customers. The move will happen in two stages, with a 1 per cent increase in June and another increase of 0.5 per cent in September.
But Santander has moved to ease fears it could follow some of its rivals by issuing a statement on its website.
The statement says: “We are aware of media speculation regarding competitor interest rate rises. We are always reviewing our rates, and we have no plans to change either our Santander or Alliance & Leicester Standard Variable Rates in the immediate future.”