Savers’ delight as providers react to base rate hike | moneyfacts.co.uk

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Michael Brown

Content Writer
Published: 17/06/2022

While savings rates increase, some lenders prefer to hold their Standard Variable Rate for mortgage borrowers.

After the Bank of England’s (BoE) base rate rise yesterday, several providers have already raised the interest rate on their variable savings accounts.

Below we have highlighted some of these providers, with some planning to hold their Standard Variable Rates (SVR) for mortgage borrowers too.

A Yorkshire rate rise

Yorkshire Building Society has promised its variable savings accounts will receive up to a 0.60% increase. Meanwhile, Leeds Building Society has promised to raise rates on its variable savings products by 0.25%, the same amount as the latest base rate increase.

“Continuing to pass the Bank rate increases on to our savers demonstrates our commitment to deliver value to our members, and in turn support their financial resilience in the current financial climate,” said Chris Irwin, Director of Savings at Yorkshire Building Society.

Richard Fearon, Chief Executive Officer at Leeds Building Society, shared a similar sentiment.

“Giving long-term good value to our members includes consistently paying above the market average to our savings members – last year this equated to an extra £71.5 million in our savers’ pockets,” he said.

Leeds Building Society’s changes will come into effect on 1 July, while Yorkshire Building Society will wait a further six days until its increase comes into force.

Skipton BS and Coventry Building Society increase rates too

Skipton BS, too, will be passing on the base rate hike to all its variable savings accounts, taking effect on 27 June. It now means it will not offer a variable savings account under 0.85%.

Coventry Building Society, however, will pass on its variable rate rise on 1 July. Further details on this change will appear on the provider’s site later this week.

“We’re proud of our track record of offering long-term value to our members, consistently paying the best rates we can afford to our savers,” said Matthew Carter, Head of Savings and Mortgages at Coventry Building Society.

Santander hikes savings and mortgage rates

High street bank Santander, meanwhile, intends to increase the savings accounts linked to its base rate on 4 July.

However, all Santander mortgage products linked to the base rate will increase by 0.25% from the beginning of July. 

Lenders hold on Standard Variable Mortgage increases

While Leeds Building Society will raise its variable savings rates, it is set to hold its SVR for mortgage borrowers.

“To support our borrowers, we’ve again agreed not to increase our SVR following today’s MPC announcement,” said Fearon.

Coventry Building Society will adjust its rates similarly, holding its standard variable rate too.

In addition to holding its SVR, Skipton BS will also be holding its Mortgage Variable Rate.

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