HSBC Bermuda will be raising its base lending rate on residential mortgages and consumer loans for the first time since 2019.

Effective October 4, it will raise its base rate for Bermuda dollar residential mortgages and consumer loans by 0.50 per cent, from 3.50 per cent to 4 per cent.

There was a 0.25 per cent reduction in 2020.

The base rate for Bermuda dollar commercial loans will increase by 0.50 per cent to 4.75 per cent, representing the first commercial rate increase since 2011 and it comes two years after a 0.50 per cent reduction in 2020.

Since the start of the year, US interest rates have risen by 2.25 per cent, including the most recent 0.75 per cent increase in July.

An HSBC Bermuda spokesman said the bank considers a number of factors when reviewing whether it should increase its base lending rate and has sought to insulate customers as much as possible, from changes of this nature.

Impacted customers will receive a letter outlining their respective new payment amount and the revised rate will be published on their website www.hsbc.bm/loans/rates/.

Residential mortgage and consumer loan holders can also e-mail hbbm.blr.change@hsbc.bm with questions in relation to the change, or contact their relationship manager should they require assistance.