Northern Rock is increasing its variable mortgage rates following last week's base rate rise by the Bank of England.

For Northern Rock borrowers whose loans qualify for a loyalty discount after seven years, the new loyalty rate will be 6.84% per annum with effect from 1 December 2006.

Northern Rock’s SVR will increase from 6.84% to 7.09% with effect from 1 December 2006.

Rates paid to Northern Rock savers are currently under review, details available when released at www.Mortgage-Shop.co.uk