Halifax Group Ltd (HFX). may raise its standard variable mortgage rate starting May 1 to 3.99 percent because of the higher cost of raising money for mortgages, the British Broadcasting Corp. reported.

The bank has written to customers to tell them it is raising the cap rate, the BBC said. The current rate is 3.5 percent, the BBC reported.

To contact the reporter on this story: Lindsay Fortado in London at lfortado@bloomberg.net.

To contact the editor responsible for this story: Anthony Aarons at aaarons@bloomberg.net.