Bank of China increases its tracker mortgage rate.
The Bank of China has increased its lifetime tracker mortgage rate.
The lender has announced its rate will rise despite the falling Libor, the lender is saying it is a necessary increase to manage high demand from applicants.
The Bank of China's lifetime tracker mortgage deal was originally launched in January 2010 and was offered at 2.3% above base. Currently this is only UK mortgage available within its range.
With rates rising in the second quarter, this tracker became highly popular and so mid June the lender increased its rate by 0.18% to 2.48% above base.
Despite this increase the lifetime tracker remained highly popular, the lender advised that due to being 'overwhelmed' by new loan applications it has taken the decision to increase its rate by 0.2 per cent.
The rate now available to new borrowers is 2.68% above BoE base which still remains highly competitive against other lenders offers.
A spokesperson for the lender advised it is not experiencing funding pressure, the decision to increase the rate was solely because the product was too competitive and a re-price was needed.
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