Nationwide Building Society has announced adjustments to savings and mortgage rates in response to the Bank of England Bank Rate increase of 0.25%. Rates affected will change as of 31 August 2018 for savings accounts, and 1 September 2018 for mortgages.
With savings rates on average 50% higher than the market over the past 12 months, these changes are designed to ensure that Nationwide’s savings rates continue to be among the best on the high street. Last year Nationwide’s higher rates equated to £435m of member financial benefit and we remain committed to delivering value to members this year.
The Society’s Base Mortgage Rate (BMR) and Standard Mortgage Rate (SMR) will remain competitive in the market at the new rates of 2.75% and 4.24% respectively. Tracker mortgage products rates will increase by 0.25%.
Nationwide will pass on the following rate changes to savers from 31 August and to borrowers as of 1 September 2018. These changes include:
Savings:
- For those saving for a first home of their own, the Help to Buy: ISA will be increased to 2.50%
- Loyalty Saver and Loyalty ISA will now pay up to 1.10%
- Flex ISA will be increased to 1.10%
- Flex Online Saver will be increased to 0.60%
- Smart will be increased to 1.00%
Mortgages:
- The Society’s Base Mortgage Rate (BMR) and Standard Mortgage Rate (SMR) will increase to 2.75% and 4.24% respectively
- Tracker mortgage rates will increase by 0.25%
Chris Rhodes, Executive Director of Products and Propositions at Nationwide Building Society, said: “The sustained low interest rate environment and competition in our core markets will maintain the pressure on margins. Despite this pressure, the Society is opting to put mutuality ahead of margin. So, while £41 billion of Society mortgage balances will see an increase as a result of the Bank Rate change, more than £70 billion of savings balances will also receive an increase. Following these changes, we will continue to offer some of the most competitive savings and mortgage rates on the high street.”
About Nationwide
Nationwide is the world's largest building society as well as one of the largest savings providers and a top-three provider of mortgages in the UK. It is also a major provider of current accounts, credit cards, ISAs and personal loans. Nationwide has around 15 million customers.
Customers can manage their finances in a branch, via the mobile app, on the telephone, internet and post. The Society has around 18,000 employees. Nationwide's head office is in Swindon with administration centres based in Northampton, Bournemouth and Dunfermline. The Society also has a number of call centres across the UK.