Halifax credit cards to attract automatic interest rate rises

Credit card customers at Halifax and Bank of Scotland will see their interest rate rise or fall automatically in line with Bank of England base rate rises from February next year. 

In a move seen as “unusual” in the industry, Halifax has written to customers to say that when a change in the base rate is announced, it will be passed on in full.  The new rate be introduced at the end of the month in which the rate change is announced.

Representative annual interest rates for the company’s cards range from 12.9% to 19.9%.  The Bank of England base rate is currently 0.5%, but rising house prices and signs of economic recovery are understood to be forcing the Bank to consider a rate rise.

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