Updated: 14 November 2024
Following the Bank of England's 0.25% bank base rate (BBR) decrease to 4.75% on 7 November 2024, we have evaluated its impact on our members, balancing the needs of savers and borrowers while ensuring the Society's sustainability.
Savers
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Our savings interest rates will decrease by an average of 0.20% (varying based on account product type). The new rates are effective 13 December 2024 and are available to download as a PDF here.
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The reduction is lower than the BBR change and almost a month after the Bank of England’s announcement, and rates will remain higher than inflation (1.7%), ensuring customers continue to receive real returns on their savings.
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Formal notifications will be sent to savers with balances over £100 on or around 21 November 2024 by email, or 27 November by post where we do not hold a current email address.
Borrowers
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Our Standard Variable Rate (SVR) will decrease by 0.15% to 6.60%, effective from 6 December 2024, affecting all variable rate mortgages.
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Another rate reduction is positive for borrowers. Whilst the full 0.25% reduction may have been expected, in overall terms we believe we continue to protect borrowers and provide fair value.
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Between December 2021 and August 2023, we passed on only 3.05% of the overall 5.00% increase made by the Bank of England and our SVR remains one of the lowest in the market.
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Formal notifications will be sent by post to borrowers detailing how these changes affect their mortgage payments, on or around 20 November 2024.
Melanie Mildenhall leads the customer service strategy delivery at Newbury Building Society.
