Cyfradd Sylfaenol Banc Lloegr – Gwybodaeth i Aelodau’r Principality

On 2nd November 2017 the Bank of England announced that the Bank Rate would increase from 0.25% to 0.50%. As a result of this increase, we will increase the variable interest rates on most of our saving products, whilst keeping mortgage and savings prices among the most competitive on the high street. 

We understand how important it is for our Members to be kept informed of changes to their interest rates, which is why you’ll find some useful information here. 

Which savings accounts and interest rates will change?

We’ll change the variable interest rates for the following savings accounts on 1st December 2017:

  • 60 Day Notice Account and 60 Day Notice Cash ISA and will increase by 0.20% to 1.10% AER†  
  • Easy Saver Account and Easy Saver Cash ISA will increase by 0.20% to 0.90% AER† 
  • e-Saver Account will increase by up to 0.20% to 0.90% AER†
  • e-ISA will increase by up to 0.20% to 0.90% AER†
  • Children’s Account will increase by 0.25% to 0.95% AER†
  • Instant Access Account will increase by 0.10% to 0.20% AER†
  • 7 Day Notice Account will increase by 0.05% to 0.20% AER†

Why are rates for Promise accounts not changing?

Our Promise accounts have consistently paid higher rates than the market average for some time and will maintain a very strong competitive position at the current interest rate.

If you feel that this account is no longer suitable for you, we also recently made some changes to our savings range, to make things more straightforward for our Members. This included the launch of two new variable rate accounts – an Easy Saver Account and a 60 Day Notice Account – which both offer competitive interest rates. For more information about these products visit www.principality.co.uk/savings or pop into your local branch.

Which mortgage rates will be changing and when?

We’ll change our Standard Variable Rate (SVR) on the 1st January 2018 for existing Members.  New Members and Members who switch their Principality mortgage deal will see the new SVR on our literature from 1st December 2017.

  • Our SVR will increase by 0.16% to 4.90% - a smaller increase than most of our competitors are applying. 
  • Members with mortgage interest rates linked to our SVR will see those rates increase. 
  • Members on a fixed rate will not be affected until their fixed rate deal comes to an end, when their mortgage will revert to our SVR.
  • Over 70% of our mortgage Members will not see an increase in their current interest rate.

How will a change in your Standard Variable Rate (SVR) impact me?

If your mortgage is on a variable rate of interest, your monthly payment will change when either the Bank of England Bank Rate changes or our SVR changes. If the rate increases, your monthly payment will also increase. Variable rate mortgages are our SVR, Tracker and Discount products.

For example, if your mortgage interest rate went up by 0.16%, your mortgage payments would go up by approximately £1.33 for every £10,000 remaining on your mortgage account, as shown in the table below. 

 Amount left to pay on your mortgage
% rise Your monthly payment will increase by approximately
 £10,000 0.16% £1.33
 £50,000 0.16% £6.66
 £100,000 0.16% £13.33
 £150,000 0.16% £20

Why are you not increasing SVR and savings rates by the full Bank Rate increase of 0.25%?

We need to balance the needs of both our mortgage and savings Members because we fund the majority of mortgage lending through our savings balances. We also need to stay competitive:

  • The changes we’ve made mean that more than 75% of our on-sale savings products (available to new and existing Members) will increase by 0.20% or more 
  • At the same time we’re increasing our SVR by a smaller amount than many of our competitors. 

Will you be contacting Members about the changes?

As the above savings rates are going up, we will not be writing to Members (this is in line with our savings terms and conditions), instead these changes will be advertised in branch, on our website and in the press.

If your mortgage interest rate is changing and it impacts your monthly repayment, we’ll write to you at least 10 working days before the change takes effect, starting from the 11th December. 

What if I need more information?

If you need more information about savings rates, or if you’ve received a letter about your mortgage repayments and have a question, then you can get in touch by visiting your local branch, or by calling us on 0330 333 4000 (lines are open Monday to Friday 8am to 8pm and Saturday 9am to 1pm).

You can also log into (or sign up for) Your Account to keep track of your interest rates.

  • 6ed cymdeithas adeiladu fwyaf y DU
  • Cymdeithas adeiladu gydfuddiannol, sy’n eiddo i’n 500,000 o aelodau ac yn cael ei rhedeg er eu lles
  • Dros 150 mlynedd o brofiad
  • Gofalu am werth dros £8 biliwn o asedau ein cwsmeriaid
  • Gall Aelodau fynd at dudalen Gworau Aelodau sy’n cynnwys cystadlaethau, gostyngiadau a mwy.

Principality. Lle mae cartref yn bwysig.