Mortgage Rate - Information for Principality Members
On 4th November 2021 the Bank of England announced that the Bank Rate would increase from 0.1% to 0.xx%.
As a result of this increase, we will be changing some of our mortgage and savings interest rates. We understand how important it is for our customers to be kept informed of changes to their interest rates, which is why you’ll find some useful information below.
The Bank of England sets an interest rate ('Bank Rate', also known as 'Base Rate') at which it lends to financial institutions. This interest rate then affects the range of interest rates that are set by banks, building societies and other institutions for their own savers and borrowers.
If you are on a Fixed Rate Mortgage, Discounted Rate Mortgage or a mortgage where the interest rate is our Standard Variable Rate (SVR), you will not be directly impacted by a change in the Bank of England Bank Rate; however we may review and alter our SVR as a result of this change.
If you are on a Tracker Rate Mortgage, your interest rate is variable and it 'tracks', or is linked to, the Bank of England Bank Rate until the end of the special rate. This means that any changes to the Bank of England Bank Rate will have an effect on your rate, and subsequently on your monthly payments which could go up. At the end of your special term your mortgage interest rate will then change to our SVR, providing you haven't switched to another mortgage product.
Yes, as your interest rate is variable and it 'tracks', or is linked to, the Bank of England Bank Rate until the end of the special rate. This means that any changes to the Bank of England Bank Rate will have an effect on your rate, and subsequently on your monthly payments which could go up. At the end of your special term your mortgage interest rate will then change to our SVR, providing you haven't switched to another mortgage product.
Your new interest rate will take effect from xxxxxxxxx, and we will write to you 10 days before to let you know your new monthly repayment.
If your mortgage account interest rate is changing and it impacts your monthly repayment, we will write to you, 10 working days before the change takes effect. You can also register for Your Account (link to Your Account), to keep track of your interest rate, not just for mortgages but savings too.
If we are going to increase the interest rate on your savings account, this will only be for variable interest rate accounts. You’ll find information on this, at your local branch, via our website, or through the newspapers within 3 working days of the change. You can also register for Your Account (link to Your Account), to keep track of your interest rates, not just for savings but mortgages too.
Yes, as your interest rate is variable and it 'tracks', or is linked to, the Bank of England Bank Rate. Your new rate will take effect from xxxxxxxx. You will see this on your statement or the next time you visit your local branch to update your passbook. You’ll also find information on this,
• at your local branch, via our website, or through the newspapers within 3 working days of the change, or
• you can also register for Your Account (link to Your Account), to keep track of your interest rates, not just for savings but mortgages too.
If you would like further information on your mortgage or savings account please visit one of our branches or call us on 0330 333 4000. Lines are open Monday to Friday x to x and Saturday x to x.
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