Earlier this week it was announced that Santander are increasing their Standard Variable Rate from 4.24% to 4.74%. As Santander now encompasses both the Alliance and Leicester and The Abbey, it is only borrowers who were formerly with The Abbey that may be affected. The Alliance and Leicester Standard Rate will remain at its current level of 4.99%. Please don’t be concerned if you are on a life time tracker rate. These schemes are linked to the Bank Of England base rate and cannot be increased unless the Bank of England chooses to raise its rate from the historic low of 0.5%. This rate was held again at 0.5% at yesterdays Bank of England Monetary Policy monthly meeting.
On a more positive note, there are now many fixed rates that are being offered below 3%. Even though it looks unlikely that the Bank of England rate may rise in the short term, these new fixed rates are as competitive as the tracker rates on offer.
Please do not hesitate to contact us if you have any concerns over your current rate or would like to have a discussion over what your options are if you are considering a move.
Finally, we are now getting closer to the ‘Gender Directive’ date of the 21st December. Please read our blog of 10th August for an explanation of this new Directive and how it may impact on you.