Santander changes mortgage and savings rates following Bank of England base rate announcement

Following the decision by the Bank of England to increase the base rate by 0.25 per cent to 0.75 per cent, Santander has reviewed its variable rates on its saving and mortgage products for existing customers and has announced the following changes today:

  • We will be making increases of up to 0.25 per cent to a number of popular savings products, including eSaver, Junior ISA, Flexible Saver for Kids and Help to Buy ISA;
  • All savings rates linked to the base rate will increase 0.25 per cent from the end of August;
  • The Alliance and Leicester and Santander Standard Variable Rate will increase by 0.25 per cent to 4.99 per cent from the beginning of September;
  • In line with the 0.25 per cent increase to all tracker mortgage products linked to the base rate, the Santander Follow-on Rate will increase 0.25 per cent to 4.00 per cent from 3 September. These new rates will be communicated to customers, along with details of their new monthly repayments; and
  • All loans to UK businesses linked to the base rate will move in line with the change and in accordance with the terms of the deal

The 1|2|3 Current Account will continue to pay 1.50 per cent on balances up to £20,000. With an interest rate on credit balances well above that of most current accounts, the 1|2|3 Current Account represents great value for millions of our customers seeking the flexibility of instant access money.

Reza Attar-Zadeh, Head of Customer Solutions, Santander said: “We have carefully considered our options and sought to achieve a balance between the rates we offer our savers and borrowers. Despite the continued low interest rate environment, we continue to offer compelling propositions for our customers and are pleased to have been able to increase rates by up to 0.25 per cent on a range of our popular savings products. The 1|2|3 Current Account continues to offer a competitive 1.50 per cent on balances up to £20,000 as well as cashback for a monthly fee.”

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Santander UK is a financial services provider in the UK that offers a wide range of personal and commercial financial products and services. It has brought real competition to the UK, through its innovative products for retail customers and relationship banking model for UK SMEs. At 30 June 2018, the bank has c24,200 employees. It serves around 15 million active customers, via a nationwide branch network, telephone, mobile and online banking; and 64 regional Corporate Business Centres. Santander UK is subject to the full supervision of the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) in the UK. Santander UK plc customers are protected by the Financial Services Compensation Scheme (FSCS) in the UK.

About Us
Banco Santander (SAN SM, STD US, BNC LN) is a leading retail and commercial bank, founded in 1857 and headquartered in Spain. It has a meaningful market share in 10 core markets in Europe and the Americas, and is the largest bank in the euro zone by market capitalization. At the end of June 2018, Banco Santander had EUR 981 billion in customer funds (deposits and mutual funds), 140 million customers, 13,500 branches and 200,000 employees. Banco Santander made attributable profit of EUR 3,752 million in the first half of 2018, an increase of 4% compared to the same period last year.

Media Enquiries
Adam Williams      T: 020 7756 5533      M: 07711 783 118      E: adam.r.williams@santander.co.uk 
Andy Smith      T: 020 7756 4212      M: 07824 473 338      E: andy.g.smith@santander.co.uk  

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