The Nationwide Building Society has made changes to savings and mortgage rates in response to the Bank of England Bank Rate increase of 0.25 percentage points.
Rates affected will change as of 31 August 2018 for savings accounts, and 1 September 2018 for mortgages.
The Society’s Base Mortgage Rate (BMR) and Standard Mortgage Rate (SMR) will see new rates of 2.75% and 4.24% respectively.
Tracker mortgage products rates will increase by 0.25 percentage points.
Savings changes include the following:
- 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%
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.”