26 Jun 2023

Bank of England Rate Rises June 2023

On Thursday June 22nd 2023, the Bank of England announced its thirteenth consecutive increase to the bank rate, taking the base rate to 5%.

We know that this will be a worrying time for many of our members with mortgages, particularly those whose fixed rate is ending soon. We continue to offer support to existing customers who may be concerned about financial difficulty and encourage anyone who is concerned about meeting mortgage payments to talk to us as soon as possible so that we can discuss what options may be available.

If your clients are worried about their rates ending soon, we encourage you to review  our existing borrower rate switch product range. You can apply on their behalf for a new product up to 4 months before their rate is due to expire.

Any decision regarding our Standard Variable Rate (SVR) for mortgages remains under review. We will communicate if we pass on increases to members in accordance with our General Terms and Conditions.

We are currently experiencing high demand through our telephone lines, and we would ask for your patience at this time. If you would like any further information or support, please email us at brokers@monbs.com

Reflection from our Chief Customer Officer, Eve Wilkins

 “We know that the latest bank rate increase will be worrying for those immediately affected, and those whose fixed rate deals end soon. This is a fast moving time for the economy and we’re working closely with our regulators, and other banks and buildings societies, to ensure we offer the right support and advice for our members.

“We are currently seeing a high volume of queries and mortgage applications and are working hard to help everyone with rates ending soon.

“We recognise how the continued cost of living crisis affects our members. As a mutual organisation, we must be considerate of the impact continued bank rate rises will have on our members, both savers and borrowers, as well as on our ability to remain a sustainable business.

“We’ve acted to protect members from the volume of increases throughout 2022 and 2023, where the Bank Rate increased twelve times, the Society increased its SVR only five times in the same period.

“I am proud that the Society remains committed to protect members and provide options across our product range. Our member support teams are working to support those facing financial difficultly, and we encourage anyone concerned to contact us.”