Effective 1st September 2023
Following the Bank of England (BoE) Base Rate change on 3rd August, the Society does not intend to increase the Standard Variable Rate (SVR) for borrowers. We will however be increasing savings rates from 1st September, click here to see the latest update
On the 1st September 2023, interest rates increased across most of our savings products. For full details please click onto our savings pages.
Please note that in response to the increase in Base Rate on June 22nd, we increased borrowers rates from August 1st as below.
On 1st August 2023, our Standard Variable Rate (SVR) increased from 7.60% to 8.10%.
If you have a variable or discount rate mortgage with us, your monthly mortgage payments will have increased on 1st August 2023.
If you’re on a fixed-rate mortgage, your monthly mortgage payment will not be affected during the term of your fixed-rate.
We have contacted all mortgage customers impacted by the change in SVR to advise of their change to payments.
Whenever Base Rate moves, we always look to balance the needs of savers, borrowers, and the long-term sustainability of the Society. Sign-up for emails and visit our website to stay up to date with our interest rate news.
What is the Bank of England (BoE) Base Rate?
The Bank of England Base Rate influences the interest rates of banks and building societies across the country. A change to the Base Rate may impact rates paid to savers and charged to borrowers. The extent of any change to savings and lending rates will be determined independently by each organisation.
What BoE Base Rate Changes have there been lately?
16th December 21 – 0.10% to 0.25%
3rd February 22 – 0.25% to 0.50%
17th March 22 - 0.50% to 0.75%
5th May 22 - 0.75% to 1.00%
15th June 22 - 1.00% to 1.25%
4th August 22 - 1.25% to 1.75%
22nd September 22 - 1.75% to 2.25%
3rd November 22 - 2.25% to 3.00%
15th December 22 - 3.00% to 3.50%
2nd February 23 - 3.50% to 4.00%
23rd March 23 - 4.00% to 4.25%
11th May 23 - 4.25% to 4.50%
22nd June 2023 - 4.50% to 5.00%
3rd August 2023 - 5.00% to 5.25%
How does a BoE Base Rate change affect Vernon rates?
Following any change in Base Rate we always consider how we can best balance the needs of savers, borrowers, and the long-term sustainability of the Society. A change to the Base Rate won’t necessarily mean a change to savings product interest rates, or the Standard Variable Rate (SVR), which applies to our mortgages. However, having considered all relevant factors at that point in time, it may mean that we increase/decrease savings product interest rates and/or the mortgage SVR.
How will an SVR change affect my monthly payments?
Your mortgage payments may change depending on the type of mortgage product you hold. If you have a fixed-rate mortgage with us, your rate will not be affected until the end of the fixed-rate term.
However, if your mortgage is currently on a variable rate mortgage, including a discounted rate, a change to SVR may affect your monthly payments. If SVR increases or decreases, the monthly payments will increase or decrease, unless your mortgage is on a “floored rate” in which case it will never decrease below the floored rate.
How much notice will I get before any changes come into effect?
When our SVR is due to change, we will communicate this to you at least 15 days before the change takes place.
What other reasons might cause SVR to change?
SVR is not solely affected by changes to the Bank of England Base Rate. SVR may change to reflect any changes or anticipated changes to laws or regulations, changes to the society’s costs or to maintain our financial strength as a mutual Society for the benefit of our Members. See your mortgage T&Cs for more information.
What should I do if I’m struggling to pay my mortgage?
If you have any worries about paying your mortgage, our support team are here to help. If you have any concerns, email us at paymentsupport@thevernon.co.uk or call us on 0161 519 9319.
How much notice will I get before any changes come into effect?
If interest rates increase, we will communicate the change on our website, via email and through notices in branches. If interest rates decrease, we will send a personal notice to all members with a savings balance of £100 or more 14 days before the change is due to take place. Please refer to section 10 of our General Savings T&Cs for more information.
Is my rate competitive?
We review similar accounts, holding similar levels of deposits, available in branch-based networks. We believe all our accounts compare favourably with similar types of organisations, which continue to provide personal service via branches in local communities.
Our Customer Advisers are available Monday to Friday, 8:45 to 17:00.
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Write to Us: 19 St Petersgate, Stockport, SK1 1HF
Email Us: info@thevernon.co.uk
Call Us: 0161 429 6262