Mortgage Rate - Information for Principality Members

On 2nd August 2018 the Bank of England announced that the Bank Rate would increase from 0.50% to 0.75%. To help keep you informed on how this may affect your interest rate, you’ll find some useful information here.



What is a Standard Variable Rate (SVR), is it changing and when?

A Standard Variable Rate (SVR) is the rate of interest we set on a mortgage.  The SVR is the lenders normal interest rate without any discounts or deals. We’ll change our SVR on the 1st October 2018 for existing Members.  New Members and Members who switch their Principality mortgage deal will see the new SVR on our literature from 1st September 2018.

  • Our SVR will increase by 0.15% to 5.05%


What other Mortgage Products are affected?

Members with a Discount mortgage
The interest rate for this product is variable and is discounted against our SVR.  As the SVR has increased, so will your monthly repayments. 

Members with a Tracker mortgage    
The interest rate on this product is variable and it 'tracks', or is linked to, the Bank of England Bank Rate until the end of the promotional term.
Because the Bank of England Bank Rate has increased, so too will your monthly repayments. You will be contacted and notified of the changes by 16th August 2018.

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

If you have a Discount mortgage or are on the Standard Variable Rate, your monthly payment will change as a result of the Standard Variable Rate increasing. 

For example, if your mortgage interest rate went up by 0.15%, your monthly mortgage payments would go up by approximately £1.25 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

0.15%

£1.25

£50,000

0.15%

£6.25

£100,000

0.15%

£12.50

£150,000

0.15%

£18.75



Will you be contacting Members about the changes?

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.


What if I need more information?

If you’ve received a letter about your mortgage repayments and have a question, or you would like information about our savings rates, please 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 in to (or sign up for) Your Account, to keep track of your interest rates.

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