Bank of England
Member Update

Notice of Product Rate Changes

1st April 2022

Following the Bank of England (BoE) Base Rate change on 3rd February 22, we can confirm the following changes to products:

 

For Savings Customers:

From the 1st April 2022, interest rates, which have already increased from 1st February across most of our savings products, will rise again. You can find full details in our 1st April Investment Rate Notice.

For Mortgage Customers:

From 1st April 2022, our Standard Variable Rate (SVR) will increase from 5.20% to 5.35%.

If you have a variable rate mortgage with us, your monthly mortgage payments will increase by 0.15% from 1st April.

If you’re on a fixed-rate mortgage, your monthly mortgage payment will not be affected during the term of your fixed-rate.

We will contact all mortgage customers that are impacted by the SVR change ahead of your payments changing.

We believe there will likely be further Base Rate changes throughout the year. Whenever Base Rate moves, we always look to balance the needs of savers, borrowers, and the long-term sustainability of the Society. Sign-up for emails and visit our website to stay up to date with our interest rate news.

The Bank of England rate subsequently changed again on 5th May from 0.75% to 1.00%. We are reviewing the implications of this latest movement and will update our website in due course.

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FAQs

What is the Bank of England (BoE) Base Rate?

The Bank of England Base Rate influences the interest rates of banks and building societies across the country. A change to the Base Rate may impact rates paid to savers and charged to borrowers. The extent of any change to savings and lending rates will be determined independently by each organisation.

What BoE Base Rate Changes have there been lately?

16th December 21 – 0.10% to 0.25%

3rd February 22 – 0.25% to 0.50%

How does a BoE Base Rate change affect Vernon rates?

Following any change in Base Rate we always consider how we can best balance the needs of savers, borrowers, and the long-term sustainability of the Society. A change to the Base Rate won’t necessarily mean a change to savings product interest rates, or the Standard Variable Rate (SVR), which applies to our mortgages. However, having considered all relevant factors at that point in time, it may mean that we increase/decrease savings product interest rates and/or the mortgage SVR.

Mortgage Customer FAQs

How will an SVR change affect my monthly payments?

Your mortgage payments may change depending on the type of mortgage product you hold. If you have a fixed-rate mortgage with us, your rate will not be affected until the end of the fixed-rate term.

However, if your mortgage is currently on a variable rate mortgage, including a discounted rate, a change to SVR may affect your monthly payments. If SVR increases or decreases, the monthly payments will increase or decrease, unless your mortgage is on a “floored rate” in which case it will never decrease below the floored rate.

How much notice will I get before any changes come into effect?

When our SVR is due to change, we will communicate this to you at least 15 days before the change takes place. 

What other reasons might cause SVR to change?

SVR is not solely affected by changes to the Bank of England Base Rate. SVR may change to reflect any changes or anticipated changes to laws or regulations, changes to the society’s costs or to maintain our financial strength as a mutual Society for the benefit of our Members. See your mortgage T&Cs for more information.

What should I do if I’m struggling to pay my mortgage?

If you have any worries about paying your mortgage, our support team are here to help. If you have any concerns, email us at paymentsupport@thevernon.co.uk or call us on 0161 519 9319.

Savings Customer FAQs

How much notice will I get before any changes come into effect?

If interest rates increase, we will contact affected customers directly within 30 days and 14 days if they decrease. 

Why haven’t all savings accounts increased in rate?

We’ve reviewed our account range in comparison to savings products provided by similar organisations with high street branches. In some cases, our rates are already more than competitive, and we’ve targeted the increases at other accounts to make them more attractive to savers.

Is my rate competitive?

We review similar accounts, holding similar levels of deposits, available in branch-based networks. We believe all our accounts compare favourably with similar types of organisations, which continue to provide personal service via branches in local communities.

Why has my 35-Day Notice Account rate not increased?

Since you opened your 35-Day Notice Account, we’ve launched a new issue of the product at a better rate. The only difference is that, unlike your version, Issue 2 has a requirement to maintain a minimum account balance of £1,000. It’s quick and easy to switch to the new 35-Day Notice Issue 2 Account; call or email us or visit us in branch and we’ll swap it over for you. We encourage you to change your account.

If you have any questions, visit us in any of our six local branches, email info@thevernon.co.uk or call 0161 429 6262.