How the Bank of England Changes affect you...
On 2 August 2018, the Bank of England announced an increase in its Base Rate from 0.50% to 0.75%. You can find out how your mortgage and savings will be affected below. You can also follow us on Facebook and Twitter and we will keep you updated there too.
If you want to get in touch regarding the changes, please contact a member of our team.
Borrowing members – how will the changes affect me?
Base Rate Tracker Mortgage
The interest rate moves by the same amount and in the same direction as any change to the Bank of England base rate. Most Base Rate Tracker mortgages have already reached their minimum floor rate and won’t see an increase until the Base Rate has passed this rate. If your mortgage interest rate is due to change, we will write to you to confirm the new interest rate and monthly repayment before the effective date and no later than the 31 August 2018.
Fixed Rate Mortgage
If your mortgage is on a fixed rate then the interest rate won’t change and your repayments will remain the same. Your interest rate may change in the future after you fixed rate term ends and we’ll tell you about this before your mortgage product comes to an end to review your mortgage product options.
Discounted Variable Rate Mortgage
The Society has taken the decision to increase our Standard Variable Rate from 5.95% to 6.20% with effect from 01 October. If you have a variable rate mortgage with us, we’ll be writing out to you personally to notify you of a change to your rates.
Saving members – How will the changes affect me?
We have reviewed the impact of the Bank of England rate increase against our existing savings accounts as well as taking into consideration the market and current saving rates available. Following this, we’ve made adjustments to our some of our saving products.
We have reviewed the impact on our savings products and have focused our efforts on bringing legacy accounts more in line with the base rate. Our savers are affected differently dependent on which product they hold. All products have been compared with the market rates to ensure we are positioned competitively for our members.
The changes will begin to take place from the 1 October 2018, as it’s a rate increase, we won’t be contacting you directly but you will find lots of information about the change on our website, adverts in your local paper, in branch or if you’d like to speak to a member of our savings team on 01282 440500.
Fixed Rate Savings (including bonds & ISAs)
If your savings are on a fixed rate then the interest rate won’t change for an agreed length of time.
Variable Rate Savings
The majority of our variable rate products have been affected by the rate change including easy access, notice accounts and ISAs.