Local Business

Banks raise some borrowing rates

  • Rate increase: Clarien Bank

Clarien Bank said today it would raise its Bermuda dollar mortgage rates by quarter of a percentage point, while Butterfield will increase Bermuda dollar corporate loans and US dollar loans by the same amount.

The announcements came after the US Federal Reserve said it would raise its influential fed funds rate by quarter of a point.

Clarien said the Bermuda dollar base rate for personal mortgages would increase from 4.25 per cent to 4.5 per cent and from 4.5 per cent to 4.75 per cent for commercial mortgages, effective tomorrow.

Butterfield said its base rate for Bermuda dollar corporate loans and US dollar loans will increase from 5.25 per cent to 5.5 per cent, effective Friday.

However Butterfield said it would not increase Bermuda dollar residential mortgages or consumer loans.

Clarien added: “The bank is issuing notices 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.”

Butterfield urged customers seeking more information to contact the bank’s Consumer Credit department on 298-4799 or their relationship managers.

Both Clarien and Butterfield will also make some rate increases to deposit products.