Following the Bank of England Base Rate increase of 0.25% to 4.25% on 23 March 2023, we are considering how this may affect the Society’s savings and mortgage interest rates.
Several factors are taken into account when deciding on whether to move interest rates and by how much, including market conditions, and balancing the needs of both savers and borrowers.
Updated: 28 March 2023
Borrowers
Our mortgage Standard Variable Rate (SVR) will increase by 0.25% to 6.25% effective from 3rd May 2023.
The Bank of England have increased Bank Base Rate by a total of 4% since December 2021. We have been able to limit how much of this increase is passed on to borrowers by not passing on the last Bank Base Rate increase and, since December 2021 increasing our SVR by 2.30%, which is 1.70% less than the Bank Base Rate.
However, 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.
Savers
The interest rates on savings accounts remains under review, and we will consider our position later in April.
Melanie Mildenhall leads the customer service strategy delivery at Newbury Building Society.
