Bank of England Base Rate Announcement 3 November 2022
Following the Bank of England’s announcement that it will increase the Bank of England Base Rate from 2.25% to 3.00% with effect from 3 November 2022, please see below details of our actions affecting both mortgage and savings customers.
Bank of England Tracker Rate Mortgages
We will be increasing the interest rate on all Bank of England Tracker mortgage products by 0.75% on 7 November 2022, in line with the terms and conditions relating to Tracker mortgage accounts. We are writing to all Tracker mortgage customers to advise them of the change of interest rate and the impact on their monthly mortgage payment.
Standard Variable Rate (SVR)/ Discounted to Standard Variable Rate Products
For customers on our Standard Variable Rate (currently 6.59%), or a mortgage product directly linked to Standard Variable Rate e.g. a discounted variable rate product, a decision has yet to be made on the interest rate adjustment that will be applied to impacted customer accounts including the effective date of any rate change.
A further announcement will follow shortly followed by a direct written communication to each customer advising of the change to their monthly mortgage payment and interest rate.
Fixed Rate Mortgage Products
Customers with Fixed Rate mortgage products are unaffected by this rate change until their current fixed rate mortgage product expires. We will write to all mortgage borrowers prior to the expiry of their deal to advise them of future changes and the options available to them.
For any borrowers worried about making their mortgage repayments, we have dedicated content available online and would encourage any borrower with concerns to contact us at the earliest opportunity on 01623 676340 or by email to email@example.com.
Bank of England Tracker Rate Savings Product
We will be increasing the interest rate on the Postal Tracker (1st issue) account from 2.25% to 3.00% on 7 November 2022, in line with the terms and conditions relating to this account.
Other Savings Products
We are currently assessing the impact of this increase and the interest rate adjustments that will apply to other savings accounts, including the effective date of any rate change. A further announcement will follow shortly. Full details of all rate changes will be communicated when we have fully considered the impact of the Bank of England increase and current market conditions.
Fixed Rate Savings Products
Customers with Fixed Rate savings products are unaffected by the rate change until their current fixed rate savings product matures. We will write to all maturing fixed rate savers prior to the expiry of their deal to advise them of any future changes and the options available to them.