The Bank of England has increased its base rate.
Keep reading to find out what that means for you as a savings or mortgage customer along with any action we’re taking.
The Bank of England increased its base rate again on Thursday 22 June 2023 from 4.50% to 5.00%. Whenever there is a change to the Bank of England Base Rate, we have to consider how it will impact our members.
I have a fixed rate savings or mortgage product, will I be impacted by the change?
If you have a fixed rate savings or mortgage product with the Society, your rate will not change as it is ‘fixed’ for the duration of the product period.
I have a variable rate savings or mortgage product, will the rate change?
We’re currently reviewing our variable rate savings and mortgage products that are not linked to the Bank of England Base Rate.
We’re owned by our saving and borrowing members, so when we’re setting our interest rates, we make decisions with the interests of our entire membership in mind which is why we have to take some time to consider this.
We’ll communicate any changes to you about your variable rate product when we have more information.
I have a base rate tracker mortgage, will my rate increase?
If you have a base rate tracker mortgage with the Society, your mortgage rate will increase in line with the terms and conditions of your product. If your tracker mortgage is subject to a pay rate floor which is greater than bank rate plus the margin on your product, your monthly payment will not change.
We’ll be writing to borrowers with a tracker mortgage to confirm any changes.
If you have an account with the Society and can’t remember the rate or type of rate, take a look at our ‘Closed Issues’ document.
Did you know that your eligible deposits are protected by the Financial Services Compensation Scheme (FSCS) up to the value of £85,000 (£170,000 for joint accounts)?
We’re here to help if you have any questions about the base rate change or your accounts with the Society. Visit our ‘Contact Us’ page to find out more.