Bank of England Base Rate Increase - update as of 9 January 2023
On 15 December the Bank of England (BOE) announced an increase in bank base rate (BBR) by 0.50% to 3.5%.
We deliberately decided not to move our interest rates prior to Christmas, so we could fully consider the impacts on savers and borrowers to include a review of what other organisations were planning and make an appropriate assessment relating to our market competitiveness. We have now completed this review and will be making changes to our interest rates as follows:
Savings interest rates will increase across our product range by up to 0.35%. This will be effective from 1 February 2023. For the full list rates for our open accounts visit here, and rates for accounts closed to new business visit here.
We will not send individual printed notices to savers due to the cost and environmental impact. Whilst we send printed notices from time to time so that we can communicate cumulative changes, it is a requirement only to communicate in this way for downward rate changes.
However, we are able to send a notice of changes to savings rates by email if we have a current email address for you. If you would like to register for updates by email, you can do so here.
If you would like to make an appointment with a Qualified Savings Adviser to review your savings and accounts available you can do so online here.
Our mortgage Standard Variable Rate (SVR) will increase by 0.40% to 6.00%, effective from 7 February 2023.
Whilst this is less than the BBR change again (we have passed on 2.05% of the total 3.25% since December 2021), we remain conscious of cost of living pressures and encourage you to contact us if you foresee any problems in paying your mortgage.
We also have some helpful information on our website, including signposting to free 3rd party services that can support you. We will support you through temporary financial difficulties. Individual notices will be sent to borrowers, on or around 20 January, detailing changes to monthly mortgage payments due on or after 7 February. Borrowers whose mortgage interest rate tracks the BBR, have already received their notifications.
Thank you for your continued loyalty to Newbury Building Society.