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Clarien to increase lending rates

Clarien Bank is raising its personal base lending rate and its commercial base lending rate

Clarien Bank Limited is to increase its Bermuda dollar personal base lending rate by 25 basis points, from 3.75 per cent to 4 per cent, next Monday.

The bank’s commercial base lending rate will also increase by a similar percentage to 4.25 per cent.

The bank said the increases were as a result of changes to the US Federal Reserve rates in 2016.

A spokesman added: “Increases in rates are as outlined in the client lending agreement.

“The Bank will be issuing notices in the coming weeks to all lending clients regarding their repayment details.

“We continue to work with all of our clients on a regular basis to understand their current financial position, and encourage clients to contact their lending officer to discuss the changes to their repayment terms.”

The Bank of Butterfield announced last month that its Bermuda dollar base rate for residential mortgages and consumer loans would increase from 3.75 per cent to 4 per cent.

The bank added that this was its first rate increase on mortgages and consumer loans in more than eight years.

The Bermuda dollar base rate for corporate loans will increase from 4 per cent to 4.25 per cent.

Butterfield’s increase took effect immediately on consumer and corporate loans. Residential mortgage rates will go up from March 6.