HSBC today became the first major lender to announce it would not increase its mortgage rate following last week’s Bank of England interest rate rise.

HSBC said it was deferring its decision on whether to increase its standard variable rate until at least after the next meeting of the Bank of England’s Monetary Policy Committee in March.

The group, the ninth biggest lender in the UK, said its Home Buyer rate would remain at 4.74 per cent until then.

But the move was bad news for savers as the group said it would also not make a decision on whether to increase its savings rates until March.

Tony Ashford, general manager of personal banking at HSBC, said: "We recognise that this decision will be welcomed by mortgage customers ahead of savers.

"But although we are in a period of low rates, many more people will be concerned with the increasing pressure of debt repayments."

Abbey, Barclays, the Woolwich, Nationwide, Sainsbury’s Bank, First Direct and Northern Rock all raised their rates within hours of the

MPC’s decision to increase rates by 0.25 per cent to 4 per cent. Britain’s biggest mortgage lender, the Halifax, and Cheltenham & Gloucester, the mortgage arm of Lloyds TSB, followed suit on Friday.

Other lenders, including Royal Bank of Scotland Group, were still reviewing their strategy today.

Lenders were criticised for being quick to raise the cost for borrowers but failing to pass on the rise in interest rates to savers.

Explore Entrepreneur

• Start-ups

• SME