Hundreds of thousands of Santander mortgage customers face an increase in their payments from October after the bank announced it was planning a rise in its Standard Variable Rate, or SVR, of half a percentage point.
The rate will move up from 4.24% to 4.74%, resulting in an average increase of £26 per month for a £100,000 mortgage
Santander said it was writing to mortgage customers to tell them about the change, which it intends to implement from 3rd October.
It explained that for the last three years the amount it costs to provide mortgages and the rates offered to savings customers have been increasing despite the Bank of England's base rate remaining static
Santander will also be writing to large numbers of borrowers who are currently on fixed rates or trackers which will revert to SVR over time. However, customers with Alliance & Leicester branded mortgages and paying SVR are not affected.
The increase follows similar moves this year from the Co-op Bank, Halifax, Bank of Ireland and the Yorkshire and Clydesdale banks.