Leek United has increased its interest rates for borrowers with less than half of the society’s mortgage customers to be affected by the rise in the standard variable rate (SVR), which takes effect from 1 October 2018.
The rate increases follow the Bank of England’s decision to raise the base rate by 0.25%, the second upward rise in interest rates in 12 months.
John Kelly, the Society’s operations director, said: “We are pleased to pass on the benefits of the recent base rate rise to the majority of our savings members, who can look forward to an improved return on their money.
“At the same time, we are mindful that the rate change also has implications for our mortgage Members; they have our assurance that we will continue to provide them with competitive, valuefor-money products at rates that are both fair and sustainable.
“We are now in the process of contacting all customers who face changes to their monthly mortgage payments. However, for those who may be concerned about what the changes will mean for them, we are here to offer the best possible advice and support.
“Our qualified mortgage advisers will be happy to discuss all options with them, customers can contact their local Branch, and additional information.”
Only those borrowers on variable rate mortgage products linked to Leek United’s SVR will be affected by the rate change; rates and monthly mortgage payments will remain the same for customers with fixed rate mortgages.