Bank of England Base Rate Increase – update as of 11 August
On the 4th August 2022 the Bank of England (BOE) announced an increase in bank base rate (BBR) by 0.50% from 1.25% to 1.75%. After considering a number of factors, we will be making changes to our interest rates as follows:
Savers - savings interest rates will increase across our product range by an average of 0.40%. This will be effective from 7th September 2022. The amount of the increase will vary according to account type and we will update interest rate notices in our branches and on our website.
Borrowers - our mortgage Standard Variable Rate (SVR) will increase by 0.35%, also effective from 7th September 2022. We are conscious of cost of living increases and have been able to limit the impact since BBR started increasing in December 2021, by passing on only 0.50% of the total 1.65% increase.
Melanie Mildenhall, Head of Customer Service said: “In an environment where the cost of living is increasing, we are committed to ensuring both our savers and borrowers continue to be offered good value for money. We are pleased that we have been able to minimise the increase in mortgage costs by passing on what is only necessary to balance the needs of both savers and borrowers, which is important for a mutual organisation. I would urge borrowers to contact us if they foresee any problems in paying their mortgage. We also have some helpful information on our website.”