Bank of England Base Rate increase - 22 June 2023
Updated: 27 June 2023
Following the Bank of England announcing a 0.50% increase on its base rate from 4.50% to 5.00% on Thursday 22 June 2023, we have considered what this means for our members. We have reviewed the market conditions and our responsibility to balance the needs of both saving and borrowing members.
Fixed rate mortgages - If you're on a fixed rate mortgage, nothing will change – you don't need to do anything. Your interest rate and monthly payments stay the same until the end of your fixed deal. If you are coming to the end of your fixed mortgage deal in the coming months and wish to discuss a product switch, please book an appointment with one of our mortgage advisers.
Variable and discount mortgages – Our Standard Variable Rate (SVR) will increase by 0.35% effective from 1 August 2023. We'll be writing to you to explain your new interest rate and monthly payments. We are conscious of cost-of-living increases and have been able to limit the impact since the Bank’s Base Rate started increasing in December 2021, by passing on 2.80% of the total 4.75% increase.
Mortgage payment concerns
We are very aware of the additional pressure on borrowers from the rises in interest rates and the cost of living increases. If you are concerned about making your mortgage payments (and rent if you have a shared ownership home) it is important to contact us as soon as you can, we will do all we can to help you.
Please contact our Payment Support team by email or by calling 01635 555588 at the earliest opportunity to discuss your situation, or if you prefer, you can make an initial enquiry using our live chat service through our website. On this page you will find contact details and other helpful information, including third-party free advice and guidance from Money Helper, which brings together the support and services of three government-backed financial guidance providers: the Money Advice Service, the Pensions Advisory Service and Pension Wise.
Our savings interest rates will increase across our product range by up to 0.50% on average, depending on the account.
We updated interest rate notices in our branches and main savings rates table on our website with these rates on 14 July 2023.
In the current financial environment, we understand our borrowers are concerned about their payments increasing, we have tried to ensure we have been able to minimise the increases we have passed on since the Bank of England base rate increases started. We are committed to balancing the needs of both our savers and borrowers by continuing to offer value for money to both, which is important we do as a mutual organisation. I would urge borrowers to contact us as soon as they can if they foresee any problems in paying their mortgage. We will do what we can to help.