The Cambridge announces changes to mortgage rates
On 4th August 2016, the Bank of England announced it would be reducing the Bank Rate from 0.50% to 0.25%. In response, The Cambridge Building Society today confirms that it will pass on the decrease in full to its Standard Variable Rate, Variable Home Loan Rate and tracker mortgage customers.
The revised rates, which will come into effect on Friday 2nd September, will result in lower monthly payments for many borrowers. The new revert rates for residential mortgages are:
Standard Variable Rate will be reduced to 4.74% (previously 4.99%)
Variable Home Loan Rate will be reduced to 2.25% (previously 2.50%)
Stephen Mitcham, Chief Executive for The Cambridge, said: “Following last week’s announcement by the Bank of England, we have considered our rates very carefully. Our decision to pass on the rate cut in full to our Standard Variable Rate and Variable Home Loan Rate is a commitment to supporting home owners and first time buyers who dream of purchasing their own home in Cambridge and the wider region. In making this commitment we acknowledge how important a strong housing market is to the long term success of the area where we live and work.
“We’ll be writing to all affected borrowers in early September in advance of their monthly payments changing later that month.”
The Cambridge is continuing to review its savings rates and will communicate what reductions it will be making next week.