Base Rate Change
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.
After the Bank of England increased its base rate in December, February, March, May & June, it was increased again on Thursday 3 August 2022 from 1.25% to 1.75%. Whenever there is a change to the Bank of England Base Rate, we have to consider how it will impact our members.
Base Rate FAQs
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.