Bank of England Base Rate Rises: Balancing Interests

Following the latest Bank of England Monetary Policy Meeting on 15^th June, the Bank Rate was increased by 0.25% from 1.00% to 1.25%.

As a mutual, the Society must balance the interests of both savers and borrowers, while ensuring it remains a sustainable business.

What this means for our savers

We’ve reviewed our position and are delighted to announce that we’ve taken the decision to increase the rates on most of our variable  accounts.

Supporting members to benefit from these increases is our priority and we will pass on the increase as early as possible.    

• The increases to member accounts range from 0.15% to 0.65% in consideration of the three latest Bank Rate increases
• In line with the terms and conditions, all tracker accounts will benefit from the increase of 0.25%
• The changes will apply to all qualifying accounts, including those on our back book, from Wednesday 13^th July (with the exception of Easy Saver and Easy Cash ISA which will change on the 20th July)

What this means for our borrowers

Passing on interest rate rises to borrowers is a difficult decision to make, especially when so many of our members are facing such a challenging economic climate. However, we must have a balanced approach to ensure we consider the impacts to all members and remain a sustainable business.

We have not passed on the increases in Base Rate seen since February 2022, even though the rate increased in March, May and more recently June.

Protecting members as much as possible, this increase is proportionate to the bank rate rises seen and will see an increase to our SVR of 0.50%.

We will also delay this increase to protect members, with the changes coming into effect from 1^st September 2022.

While the terms and conditions on tracker mortgages outline rate changes must take place within 30 days of the announcement, as the rates are increasing, to protect these members, we will delay the increase to the rates they pay to apply from 1^st August 2022.

As always, we have support and advice available for any members or colleagues who are struggling to meet their mortgage repayments.

Useful Resources

We have a list of useful resources available on our website, including organisations who can offer independent advice and support.

Find out more.

View our helpful guide to what savings products have changed here