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Bank of England Base Rate Change

Aldermore has confirmed it will be reducing its variable mortgage and savings rates by 0.25% following the Bank of England base rate announcement to decrease by 0.25% from 0.50% to 0.25%.

What has happened?

The Bank of England reduced the Bank Base Rate from 0.50% to 0.25% on Thursday 4th August.

How does this impact Aldermore customers?

In response, Aldermore will reduce its standard variable mortgage rate, the Aldermore Managed Rate (AMR), by 0.25% from 4.98% to 4.73% with effect from 1st September for both new business (including pipeline) and existing customers.  Most of Aldermore’s variable savings rates will also be reduced by 0.25%.

What is Aldermore’s position?

Aldermore will be lowering its standard variable rate, the Aldermore Managed Rate (AMR), by 0.25% to 4.73% from 1st September. Most of Aldermore’s variable savings rates will also be reduced by 0.25%.

How will this affect existing mortgage customers?

The Aldermore Managed Rate (AMR) is Aldermore’s standard variable and links to variable mortgage rates on Aldermore’s residential and standard buy-to-let mortgages.

Aldermore mortgage customers with a variable rate mortgage linked to the Aldermore Managed Rate will see their current interest rate reduce by 0.25%. This also applies to residential and standard buy-to-let range customers outside of their fixed rate deal period.

When will this affect existing mortgage customers?

Aldermore mortgage customers with a variable rate mortgage linked to the Aldermore Managed Rate will see their monthly payments decrease in line with the reduction in their current interest rate from 1st September 2016. Aldermore will write to all customers impacted, letting them know their new interest rate and monthly payments.

How will this affect new and existing savings customers?

Most of Aldermore’s variable savings rates will be reducing. The changes for new and existing customers and the effective dates are shown below:

  • Business Savings Easy Access Accounts will reduce from 1.10% to 0.85% on 30th September 2016 for existing customers and 11th August 2016 for new customers.
  • Help to Buy ISA will reduce from 2.00% to 1.75% on 30th September 2016 for existing customers and 18th August 2016 for new customers.
  • Retail Easy Access Accounts (issues 1-9) will reduce from 1.25% to 1.00% on 30th September 2016 to align with the current on sale rate for new customers (issue 10).
  • 30 Day Notice and ISA accounts (issues 1-5) will reduce from 1.30% to 1.05% on 30th September 2016 to align with the current on sale issue rates for new customers.
  • 45/60 Day Notice and 60 Day ISA Accounts will reduce from 1.35% to 1.10% on 31st October 2016.
  • 90 Day Notice will reduce from 1.40% to 1.15% on 30th November 2016.
  • 120 Day Notice will reduce from 1.45% to 1.20% on 30th December 2016.

 

Aldermore will write to all impacted customers to let them know the new interest rate and the date that it takes effect.

 If you have any questions at all, please contact us.

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