You will have probably seen the Bank of England Base Rate increased by 0.50 percentage points to 1.75% on 4 August 2022.
Following this, we are implementing rate changes across both our variable mortgage and savings product ranges. Here is everything you need to know.
When we consider our response to Base Rate changes, we consider the potential impact on both mortgage borrowers and savings members. We are particularly mindful of the pressures on households’ finances from inflation and from several consecutive Base Rate changes in such a short period.
Variable rate savings account rates will increase by a blended average of 0.40 percentage points effective 11 August 2022. Increases will be applied on a product-by-product basis.
In a further step to improve our offering to members, we will introduce a new 1 Year Fixed Rate Bond at 2.20% Gross/AER* and a 2 Year Fixed Rate Bond at 2.65% Gross/AER.
We are also introducing a 1 Year Fixed Rate ISA at 2.00% Tax-Free***/AER and a 2 Year Fixed Rate ISA at 2.45% Tax-Free/AER .
All bonds and ISAs allow you to choose to receive interest monthly.
We will also be withdrawing three-year fixed bonds and ISAs, and regular saver accounts for the time being.
Our mortgage Standard Variable Rate (SVR) will increase by 0.30 percentage points to 5.84%, effective 1 September 2022.
Existing Base Rate tracker mortgage account holders will have the 0.50 percentage points increase applied from 1 September 2022, in line with their terms and conditions.
Existing mortgage holders affected by the rate change will be written to individually.
Since December 2021 the Base Rate has increased by 1.65 percentage points with six consecutive rate rises. In responding to these changes we have increased our SVR by a total of 0.60 percentage points (including this change effective 1 September 2022).
Mortgage or savings account holders with an existing fixed rate product will not have any changes applied.
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Mortgage payment difficulties.
If you have a mortgage with us and are concerned about meeting your repayments please get in touch with us as soon as you can, either by calling 0330 123 0773 or emailing [email protected]. We’ll work with you to help find a solution and the earlier we know, the better we can help. You can find details of what support we may be able to offer by clicking here.