The building society updated its website shortly after the Bank of England raised interest rates from 2.25 to three percent earlier today (November 3). It hasn’t yet confirmed what its new savings rates will be but has said it will let customers know as soon as possible.
While today’s Bank of England base rate rise means the cost of debt and mortgages will be more expensive, it’s good news for savers who should be offered more attractive rates.
Yorkshire Building society has immediately confirmed it will be passing on these although it hasn’t yet said how much rates will increase.
It currently offers 2.5 percent interest on its Rainy Day Account on balances up to £5,000, falling to two percent for savings above this.
Its loyalty Regular Saver account provides five percent interest to existing customers but savers are limited to one withdrawal without being penalised.
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Laura Suter, head of personal finance at AJ Bell, warned that many people with mortgages will see their payments increase.
She said: “Generally the interest rate charged on new mortgages rises as base rate increases. However, you’ll often find that mortgage rates rise before the base rate has increased.
“Mortgages are priced based on a number of different factors, including competition in the market but also the cost of the money mortgage companies borrow to then lend out to borrowers – whether that’s from savers’ deposits or the wholesale market.”
Meanwhile, Britons worried about their new mortgage payments can put their details into an online mortgage calculator which shows how much they can expect to pay after interest rate rise.
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