As a building society, we always consider the interests of our membership, both savers and borrowers, when setting our rates. We strive to use our financial strength to pay above the market average savings rate to our savings members. Between January 2024 and December 2024, the average rate we paid to savers was 4.13%*, compared to a market average of 3.34%.
This meant we generated the equivalent of £175m in extra interest for members.
Savings
Most of our savers hold fixed rate accounts and they’ll continue to receive that rate until their product matures. For those with variable rate accounts, further changes in the Bank of England base rate during 2025 will be factored into any changes to our variable rates. Our minimum member rate, as of February 2025, is a competitive 2.00%^.
Mortgages
If further changes to the Bank of England base rate are announced throughout 2025, we’ll update members on what this means for them. Most of our borrowers are on fixed rate products, and rates for those members will remain the same until their fixed periods end.
Members’ mortgages that track the Bank of England rate will change automatically in line with the terms and conditions of the account. In addition to any change in Standard Variable Rate (SVR), we contact all mortgage members annually via their mortgage statement. For those with a fixed term mortgage, we’ll get in touch before the end of that mortgage deal to let them know about switching their mortgage to a new deal. We have a broad range of competitive products available to existing customers, with different options for mortgage terms and Loan to Value (LTV).
*The Society paid an average of 4.13% to our savers compared to the rest of market average of 3.34%, which equates to an annual benefit to our savers of £175.0m. Source: CACI’s CSDB, Stock, January 2024 to December 2024, latest data available. CACI is an independent company that provides financial benchmarking data of the retail cash savings market.
^For example, on 25 February 2025, our E-Saver (Issue 9) offered a rate of 2.00% Gross p.a./AER Variable. Gross means the rate of interest payable before the deduction of income tax at the rate specified by law. AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and added each year.
