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TSB Unwinds Last Summer's Interest Rate Changes Following Bank of England Base Rate Rise
Today the Bank of England has decided to increase the base rate by 0.25% to 0.50% – unwinding its 0.25% rate cut made last summer.
TSB will also be unwinding the changes made to the interest rates on its variable rate savings, mortgage and base rate linked credit card accounts – putting customers back into the position they were at in August 2016, before the Bank of England reduced rates by 0.25%.
Interest rates on TSB’s variable rate mortgage and base rate linked credit card accounts will increase by 0.25%. Interest rates on variable rate savings accounts will increase by 0.15%. In August 2016, TSB protected savers from the full base rate decrease by only reducing interest rates by 0.15%.
TSB Partners are ready and available to help savers and borrowers understand the impact these changes will have, to answer any questions and to guide our customers through this change.
Jatin Patel, TSB’s Product Director, says: “It’s been over a decade since base rates have increased and customers will have many questions about how the increase will affect them. We will be putting our customers’ variable rate mortgages and savings back to the position they were at before the Bank of England reduced rates last year.
“People may find it daunting to navigate the changes without support, which is why TSB Partners are on hand to help. We have great Partners in our branches and on our customer service team to guide people through this change.”
A detailed summary of TSB’s interest rate changes can be found in the table below. Rate changes will come into effect on 30 November 2017 for credit card customers, and on 1 December 2017 for mortgage and savings customers.
Helping customers to borrow well
Many TSB customers who have taken advantage of TSB’s range of fixed rate mortgages will not be affected by this base rate increase.
For customers with a variable rate mortgage, TSB understands that this may be the first time many customers have experienced an increase to their mortgage payments. Customers with concerns or questions should contact their local branch or our customer service team to book an appointment with our mortgage advisers who will be happy to help and discuss what options are available.
On a typical variable mortgage of £100,000, an increase of 0.25% will see payments rise by around £3 a week. TSB is encouraging all borrowers to pause for thought about how they would factor any increase into their monthly budget.
There is no ‘one size fits all’ solution for borrowers who may see their payments increase – but there is no need to panic. For borrowers who are concerned, now is the time to talk to their lender and start preparing.
| Variable Rate Mortgages | ||
| Business Banking Variable Lending | ||
| Base Rate linked Credit Cards | ||
| Junior Cash ISA | ||
| Young Saver (balances of £0-£20,000) | ||
| Business Banking Saving Rates | ||
| All other savings accounts for new and existing customers | ||
Notes to editors
TSB was built to bring more competition to UK banking and ultimately make banking better for all UK consumers. TSB only serves local customers and local businesses, to help fuel local economies, because communities thriving across Britain is a good thing for all of us.
We have a simple, straightforward and transparent banking model and make clear on our website how we operate and make money. We offer the products and services people tell us they want, with none of the funny stuff people normally associate with traditional banks.
Our five million customers appear to notice: TSB is Britain’s most recommended high street bank and was recently identified as one of the top 10 big companies to work for.
For further information about TSB Bank plc, please visit our website www.tsb.co.uk.
