The Bank of England announced on 2nd August 2018 that the current Bank base rate will increase from 0.50% to 0.75%. What does this mean for you?
We have considered our position on how this change will affect our mortgage customers, balancing the needs of our customers and the Society.
Standard Variable Rate
We will not be increasing our Standard Variable Rate (SVR) following the Bank of England Base Rate rise. Our SVR remains at 4.99%. All fixed rate mortgages will be unaffected.
If you're an existing customer with a base rate tracker, we'll be updating your interest rate in line with the terms from 9th September. Monthly payments will be changed when we complete our annual review in December, and will take effect in March. To amend your payment before then:
We put all of our variable savings rates up by 0.25% in response to last year’s base rate increase. We review our savings pricing regularly and this tells us that the rates we’re offering across our range of savings accounts are still competitive today even after this second base rate rise as most of our competitors have been much less generous
We will continue to monitor our range of savings products to ensure we offer fair and sustainable value, and will advise customers of any changes we make.
The base rate will change when the Bank Monetary Policy Committee determines that the UK economy needs to adjust to remain stable and sustainable.
The Bank of England’s Monetary Policy Committee regularly reviews the base rate (presently eight times a year) to determine whether a change is required.
We would need to review the impact of any further Bank rate changes in the context of the market and other economic factors at any such time.