Further changes to our Mortgage and Savings Rates
The Bank of England increased its Bank Base Rate (BBR) from 0.25% to 0.50% on 2 November 2017. Like all banks and building societies, we include the Bank Base Rate as one of a range of factors to be considered when setting our savings and mortgage interest rates.
In this instance we will be increasing our Standard Variable Rate (SVR) for mortgages, and at the same time increasing the interest rate on the majority of our variable rate savings accounts, with effect from 1 January 2018.
To help you understand what this means to you, we’ve put together the following information to answer questions you may have regarding your savings or mortgage account with us.
What does this mean for our mortgage customers?
As a result of the change to the Bank Base Rate, we will be increasing our Standard Variable Rate (SVR) by 0.25% with effect from 1 January 2018 to 5.59%.
If you have a Bank Base Rate tracker mortgage, the interest rate charged on your account will have increased on 6 November, in accordance with the terms and conditions of your account. You will have already been notified of this change and the impact on your monthly mortgage repayments.
Discounted variable rate mortgages
If you have a discounted variable rate mortgage, the interest you pay is directly linked to our SVR and will therefore increase by 0.25% with effect from 1 January 2018. We will write to you before your January payment is due, informing you what your new monthly mortgage repayment will be.
Fixed rate mortgages
If you have a fixed rate mortgage, your interest rate will remain the same until the fixed rate period ends.
If you have any questions or queries about your mortgage account, please visit your local branch or call us on 01623 676 340.
What does this mean for our savings customers?
Following the Bank Base Rate change, we will be applying interest rate increases to the majority of our variable rate savings accounts.
Tracker savings accounts
If you have a Bank Base Rate tracker savings account, the interest rate on your account will, subject to the terms and conditions of your account, have already increased by 0.25% with effect from 6 November.
Variable rate savings accounts
The majority of our variable rate savings accounts will receive an increase that will be applied with effect from 1 January 2018. The savings rate increases to our variable rate savings accounts will range between 0.10% and 0.75%.
To find out how your account has been affected by these changes, you can download a summary information leaflet to find out more, or contact your nearest branch where we’d be pleased to help.
Fixed rate savings accounts
If you have a fixed rate savings account, your interest rate will not be affected by the Bank Base Rate increase.
Our product pages, interest rate summary leaflet and closed issue leaflet will be updated in due course. If you have any questions or queries about your savings account, please visit your local branch or call us on 01623 676 350.
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