Santander for intermediaries has raised the pay rates on its new business and product transfer tracker rates by 25 basis points from today (9 August).  

The high street bank’s broker-only arm says that no action is required for pipeline cases.  

It adds that for existing Santander and Alliance & Leicester customers who are on a base rate tracker mortgage, their rate will increase by 25bps from the beginning of September.  

The lender says their is currently no change to the rates and fees on its fixed-rate loans.  

The move follows the Bank of England’s base rate rise by 25bps to 5.25% last week, its 14th consecutive rise and the highest level for 15 years.      

The central bank is battling inflation, which dropped to 7.9% in the year to June from 8.7% the month before, but still remains almost four times higher than its 2% target.