HSBC Bank Bermuda Ltd is to raise its base lending rate for the first time since 2010.

The rate will increase by 0.25 of a percentage point, effective July 1, 2019.

The base rate for Bermuda dollar residential mortgages and consumer loans will increase to 3.75 per cent.

The base rate for Bermuda dollar corporate loans and US dollar loans will not increase at this time, HSBC Bermuda said today.

“The bank considers a number of factors when reviewing whether it should increase its base lending rate and has sought over the years to insulate customers as much as possible, from changes of this nature,” the bank said in a statement.

“Given the length of time since the last base lending rate increase, the bank wants to ensure that customers are given adequate notice to prepare for the change.

“In addition to this announcement, impacted customers will receive a letter outlining their respective new payment amount and the revised rate will be published as per the usual process on the bank’s website.”