Updated 13 May 2025
Following the Bank of England base rate decrease of 0.25% to 4.25% on 8 May 2025, we have considered how this affects the Society’s savings and mortgage interest rates.
Savers
Our savings account rates will be reducing. Reductions are between 0.15% and 0.25% depending on the account. Despite this Bank Base Rate reduction, over half of our savings accounts are not being reduced by the full 0.25% and we believe our new savings rates continue to provide value to our customers. The new interest rates for our current and closed savings accounts are downloadable here. These new account rates are effective from 6 June 2025.
We regularly review our savings accounts, considering market conditions and balancing the needs of both saving and borrowing members.
Borrowers
Our Standard Variable Rate (SVR) will decrease by 0.10% from 6.40% to 6.30% on 6 June 2025, affecting all variable rate mortgages.
A reduction in mortgage rate is good news for borrowers. Whilst this time we pass on 0.10% of the 0.25% decrease, our SVR at 6.30% remains one of the lowest in the market and therefore, with this latest rate reduction and the protective changes we have previously made (during a period of increasing rates and a cost of living crisis), in overall terms we continue to protect borrowers and provide fair value.
Formal notifications will be sent by post to borrowers detailing how these changes affect their mortgage payments, on or around 24 May 2025.
Thank you for your continued loyalty.
Melanie Mildenhall leads the customer service strategy delivery at Newbury Building Society.
