On Thursday 1 August 2024, the Bank of England lowered the base rate by 0.25%, from 5.25% to 5.00%.
We have reviewed the rates payable on our mortgage and savings accounts. Our priorities were to balance the needs of both our savers and our borrowers, and to consider this base rate reduction alongside previous base rate decisions and the Society’s responses. We have sought to ensure that our interest rates continue to offer good value.
Mortgages
Our standard variable rates of interest will not be changed following on from the base rate reduction.
Our standard variable rate for residential mortgages at 6.20% was already one of the lowest in the market and our research shows that this will continue to remain so. We have sought to protect our borrowers on several occasions by not passing on base rate increases. For example, between December 2021 and August 2023, the bank base rate rose by 5.15% however the Society’s Standard Variable rate increased by 3.25% through the same period.
Savings
Many of our savings’ rates will not be affected by the Bank of England decision, however we have decided to reduce the rate of interest on several accounts by between 0.10% and 0.25%. These changes will take place on 1 September 2024.
The impacted accounts are the Instant Access Cash ISA, Pullman Instant Access and Pullman Monthly, whose rates have reduced by 0.10%. Additionally, the 120-day Notice Account and 120 Day Notice Monthly Saver have a 0.20% reduction and the 60-day notice Cash ISA will see its rate reduce by 0.25%.
Letters will shortly be sent to savers who hold one of these accounts, outlining the changes and their options.
The Society has a wide range of competitive products still available, and details of these along with our contact details can be found on this website.
