Standard Variable Rate Increase

30 November 2017

Following the announcement by the Bank of England in November to increase the Bank Rate to 0.50%, after careful consideration the Society has decided to raise its Standard Variable Rate (SVR) from 4.74% to 4.99%. New Members will see this in our correspondence from 1st December 2017. Existing Members will see this from 1st January 2018.

Frequently Asked Questions

What is a Standard Variable Rate Mortgage?

The Standard Variable Rate, or SVR as it's more commonly known, is a variable rate mortgage offered by the Society. This is the rate of interest that we will charge once a Members fixed, discount or tracker mortgage ends. This rate can move up or down and is usually in response to a movement of the Bank of England Bank Rate.

I’m on a discount rate mortgage, does this affect me?

Discount rate mortgages provide, for a period of time, the borrower with a ‘discounted’ rate of interest on their mortgage account. Once this period has come to an end, it will revert back to the SVR set by the Society. With the Society’s SVR increasing from 4.74% to 4.99%, your monthly payments will increase. We will contact you, in writing, to let you know your new repayment amount, and when it will take effect from.

I’m on a tracker mortgage, does this affect me?

Sometimes known as Bank Rate trackers, tracker mortgage rates ‘track’ (increase or decrease) in line with the Bank of England’s Bank Rate. With the Bank Rate now increased to 0.50%, so too will your monthly payments. We will contact you, in writing, to let you know your new repayment amount, and when it will take effect from.

I’m on a fixed rate mortgage, does this affect me?

Simple, it won’t. If you’re on a Fixed Rate mortgage your monthly payments remain the same until the fixed rate period comes to an end. This is one of the benefits to having a fixed rate mortgage. When you are nearing to the end of your fixed rate mortgage we will contact you in advance to discuss and advise the options open to you.

If SVR changes, what must I do?

If you are on an SVR, Tracker or Discount mortgage, and you pay your mortgage by Direct Debit, you do not need to do anything. We will write to you with details of your new payment and collect it monthly as normal.
If you pay your mortgage by standing order you will need to contact your bank and amend your standing order from the date the next repayment is due. We will advise you in writing of your new monthly repayment.

I’m on SVR and concerned my payments may increase, what do I do?

If you have any concerns over the increase, please contact us on 01633 844370. You can obtain additional help and information from: Citizens Advice Bureau, National Debt-line and the money advice service. Contact details for these organisations are as follows:

Citizens Advice:

- Web chat service available
- Call 0344 477 2020

National Debt Line:

- Web chat service available
- 0800 002 9051

Money Advice Service:

- Web chat service available
- 0800 138 7777

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