Updated 4 August 2023
Following the Bank of England Base Rate increase of 0.25%, to 5.25% on Thursday 3 August 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.
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.
SAVERS
Our savings interest rates will increase across our product range by up to 0.25% on average, depending on the account. For the full list of new savings rates on open and closed to new business accounts, effective from 17 August, click here.
We will also be writing to you to advise you of these changes to each account.
BORROWERS
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 0.25% to 7.0%, effective from 5 September 2023. We will be writing to you to explain your new interest rate and monthly payments.
Whilst we appreciate an increase in interest rate is never welcome, we have been able to limit the impact since the Bank’s Base Rate started increasing in December 2021, by only passing on 3.05% of the 5.00% increase to date.
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.
Mortgage Charter
We are supporting the government’s Mortgage Charter, designed for borrowers who need help with their mortgage payments due to the rising cost of living. For further details of the Charter and what this may mean for you please click here.
Thank you for your continued loyalty to Newbury Building Society.
Melanie Mildenhall is Head of Customer Service at Newbury Building Society.
