Santander will boost pay rates on all of its new business and product transfer tracker rates by 50 basis points, following the hike in the Bank of England base rate last week.  

The high street lender says its rates and fees on fixed-rate products will not change.  

It adds no action is required for pipeline cases.  

The bank says that for existing Santander and Alliance & Leicester customers who are on a base rate tracker, their rates will not change until February 2023.  

The move comes as the Bank of England’s Monetary Policy Committee hiked interest rates by 50 basis points to 3.5% to combat rising prices last Tuesday, the highest rate for 14 years. It is the ninth consecutive hike since last November when rates stood at 0.10%.    

Also, UK inflation dipped to 10.7% in November as an easing in the rise in petrol prices helped to lower the rate from a 41-year high of 11.1 per cent last month, according to the Office for National Statistics earlier this month.