Update Our SVR is changing

Update

Our SVR is changing

On 1 July 2022 the Society’s Standard Variable Rate (SVR) for mortgages will increase from 5.49% to 5.94%. We have held our SVR at 5.49% for as long as possible. During the past six months the Bank of England base rate has risen by 1.15%. In response to this and in order to continue balancing the needs of both mortgage and savings customers, we have taken the difficult decision to increase our SVR. This also applies to the Society’s Holiday Let SVR (HLSVR) and Commercial Variable Base Rate (CVBR).

Below we've outlined how you may be affected by the change and if you should take any action.

If your MHBS mortgage rate is linked to our SVR

We’ll be in touch shortly to let you know how your rate and monthly mortgage payment will be affected by the change.

If you make monthly repayments, your payment amount due in July will change.

If you pay by direct debit – you do not need to do anything, your mortgage payments will be changed automatically. If your direct debit is fixed at a higher payment, this will continue to be collected from your bank account.

If you pay your mortgage by standing order – you will need to contact your bank and give them the new payment details.

If you currently hold an MHBS fixed rate mortgage

We will email or write to you to let you know about the SVR change.

Whilst you are on a fixed rate mortgage, there will be no change to your current rate or monthly payment amount.

When your fixed rate deal is coming to an end, we will get back in touch to let you know the options available.

If you currently have bridging finance with a roll-up facility

We will email or write to you about the SVR change.

Your mortgage is held on an interest-only basis with no monthly mortgage payments required. The interest is calculated daily and added to your account balance on the last working day of each month. The interest is compounded, which means it is calculated on your mortgage balance plus any interest that has previously accrued.

This SVR increase will affect the amount of interest that is charged each month. You should ensure that your repayment strategy is in place and sufficient to repay the amount owed at the end of the term.

If your variable rate mortgage application is due to complete in the coming days

We will contact you about the SVR change and the options available to you.

To talk to us about this or any change you wish to make, please get in touch at your earliest opportunity, and before 12 July.

 

If you have applied for a discounted variable rate mortgage or bridging finance with us

We will contact you about the SVR change and the options available to you.

If you are using a mortgage broker, we have already let them know. You may wish to talk to them about your options.

To get in touch with us about this or any change you wish to make, please contact us at your earliest opportunity, and before 12 July (or 8 July for those planning to product switch on 1 August).

 

If your mortgage adviser intends to apply for an MHBS discounted variable rate mortgage or bridging finance on your behalf

Our latest products will be available to view from 27 June.

Your intermediary will be able to select one of these products for you when they start the application process.

For more help

If you’d like more help understanding what this means for your mortgage or to talk to us about your circumstances, please call 01858 412412.