Bank of England Increase Bank Rate June 2023
On Thursday June 22nd 2023, the Bank of England announced its thirteenth increase to the bank rate since 2020, taking the base rate to 5%.
We know that this will be a worrying time for many of our members with mortgages, particularly those whose fixed rate is ending soon. We continue to offer support to existing customers who may be concerned about financial difficulty and encourage anyone who is concerned about meeting mortgage payments to talk to us as soon as possible so that we can discuss what options may be available to you.
For members who are worried about their fixed rates ending soon, we encourage you to look at our existing product range and get in touch if you want further advice. You can also contact your independent financial advisor or go to unbiased.com to find a provider if needed.
We are currently experiencing high demand through our telephone lines, and we would ask for your patience at this time.
Please remember, if the mortgage you have is on a fixed or discounted rate, this applies for the term of that product, so please don’t contact us too far in advance of the end of this term. This will help us to prioritise those members whose fixed rates finish earlier.
Any decision regarding our Standard Variable Rate (SVR) for mortgages remain under review and we will communicate if we pass on increases to members, in accordance with our General Terms and Conditions.
If you’re concerned about your finances, we have a list of organisations that can offer help and support, please click on our ‘Financial support and advice’ pages.
For members with savings, we want to pass on any movements swiftly and we continuously review our existing and new products. As a regional building society, we can respond quickly to market conditions.
Please check our savings product pages to check the rate of your existing products.
Reflection from our Chief Customer Officer, Eve Wilkins
“We know today’s news will be worrying for those immediately affected, and those whose fixed rate deals end in the next twelve months. This is a fast moving time for the economy and we’re working closely with our regulators, and other banks and buildings societies, to ensure we offer the right support and advice for our members.
“We are currently seeing a high volume of queries and mortgage applications and are working hard to help everyone with rates ending soon.
“We recognise how the continued cost of living crisis affects our members. As a mutual organisation, we must be considerate of the impact continued Bank of England rate rises will have on our members, both savers and borrowers, as well as on our ability to remain a sustainable business.
“We’ve acted to protect members from the volume of increases throughout 2022 and 2023, where the Bank Rate increased twelve times and the Society increased its SVR only five times in the same period.
“I am proud that the Society remains committed to protect members and provide options across our product range. Our member support teams are working to support those facing significant financial difficultly, and we encourage anyone concerned to contact us.”
