Following today’s decision to lower the Bank of England base rate to 0.25 per cent from 0.50 per cent, Santander can confirm that:
- We will pass on the reduction to our Standard Variable Rate on mortgages in full. From the beginning of September 2016, Santander’s Standard Variable Rate will be 4.49 per cent. The Alliance & Leicester Standard Variable Rate on mortgages will also be reduced by 0.25 per cent to 4.74 per cent.
- All mortgage products linked to base rate will move in line with the reduction. These new rates will be used to calculate mortgage repayments with effect from the beginning of September.
- All loans to UK businesses linked to the base rate will move in line with the reduction and in accordance with the terms of the deal.
- We’re reviewing our variable savings rates and will notify any customers whose accounts will be impacted ahead of any changes being made, so customers can take appropriate action if needed.
- We can confirm that rates on our existing savings accounts will not be reduced by more than 0.25% as a result of the base rate change.
- Given changing market conditions, including the market expectation that interest rates will be lower for longer, we’ll also be reviewing our current accounts. Any customers affected will be notified of changes in advance so they can take appropriate action if needed.
Reza Attar-Zadeh, Head of Retail Products said, “When we review rates, following a change in Bank of England base rate, we consider both the interest we charge for borrowing money, and the rate of interest we can offer on deposits. Santander is passing on the rate reduction in full to its mortgage customers and for our existing savings accounts, we’ll be reducing rates by no more than 0.25 per cent. Given changing market conditions, including the market expectation that interest rates will be lower for longer, we are also reviewing our current account interest rates.”
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Notes to Editors
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. As at 30 June 2016, the bank serves around 14 million active customers with c. 20,000 employees and operates through 847 branches (which includes 58 university branches) and 69 regional Corporate Business Centres. Santander UK is subject to the full supervision of the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) in the UK. Santander UK plc customers are protected by the Financial Services Compensation Scheme (FSCS) in the UK.
Banco Santander (SAN SM, STD US, BNC LN) is a leading retail and commercial bank, based in Spain, with a meaningful market share in 10 core countries in Europe and the Americas. Santander is the largest bank in the euro zone by market capitalization and among the top banks on a global basis. Founded in 1857, Santander had EUR 1.52 trillion in managed funds, 12,500 branches and 190,000 employees at the close of June 2016. In the first half of 2016, Santander made underlying profit of EUR 3,280 million.
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