Our mortgage rates will not be affected by the Bank of England rate increase
You may have seen reports in the media that the Bank of England base rate has increased to 0.5% and that this will result in an increase in mortgage rates.
We have no plans to change our mortgage rates due to the rise in the Bank of England base rate. Glasgow Credit Union mortgages differ from bank and building society mortgages because unlike them, we don’t borrow any money from other lenders, which means we’re not directly impacted by any Bank of England base rates.
This means we don’t have to change our rates when the Bank of England changes the base rate. All our rates are based on the credit union’s Standard Variable interest rate and not the Bank of England base rate.
Our mortgage rates are set by the credit union based on a number of factors, but most importantly, what will provide the best value for all our members. We review our rates quarterly and haven’t increased our Standard Variable rate since April 2009. We have no current plans to increase it.
For years, banks and building societies have borrowed cheap money and have been offering low rate mortgages. However, over the last few months, they have been increasing rates in preparation for this rise in the Bank of England base rate. Glasgow Credit Union’s ethical principles restrict us from adopting this model.
Our Discounted Variable rate products will continue to offer a guaranteed discount of up to 1.25% off our Standard Variable rate. So, regardless of which one of our mortgage products members choose, there’s no need to worry. Our mortgages rates will remain the same and won’t be affected by this Bank of England rate increase.