Variable Rate Mortgage, Base Rate linked Credit Card and Business Banking Lending customers receive full 0.25% reduction.
Following yesterday's decision by the Bank of England to decrease the interest Base Rate by 0.25% to 0.25%, TSB confirms it will be passing on the reduction in full to its Variable Rate Mortgage customers, Base Rate linked Credit Card customers and Business Banking customers with variable rate loans or overdrafts.
Many customers who have taken advantage of TSB's range of Fixed Rate Mortgages will not be affected by the decrease in the Base Rate.
Rate changes to applicable accounts will come into effect on:
- 8 August for onsale Variable Rate Mortgage customers
- 1 September for existing Variable Rate Mortgage customers
- 5 August for Variable Rate Business Banking Lending customers
- 31 August for Base Rate linked Credit Card customers
TSB customers affected by the changes will be informed of any changes to their account(s) as well as details of any new payment amount(s) and what they need to do (if required).
A summary of the changes can be found in the table below.
|Product||Current Rate||New Rate||Effective Date|
|Variable Rate Mortgages||Reduced by 0.25%||New customers 8 August 2016
Existing customers 1 September 2016
|Business Banking Variable Lending||5 August 2016|
|Base Rate linked Credit Cards||31 August 2016|
Jatin Patel, Director of Products, TSB commented: "The base rate has not changed for more than seven years and we understand that for many of our customers this will be the first time they will have experienced a change. People may find it difficult to navigate the changes without support, which is why TSB will be on hand to help guide customers through any impact the base rate change may have on them.
"We have great Partners in our branches and on our customer service team ready and available to guide people through this change."
TSB was built to bring more competition to British banking - to be a real challenger to the big banks and to deliver the kind of banking the people of Britain want. TSB only serves local customers and local businesses, to help fuel local economies, because communities thriving across Britain is a good thing for all of us.
We have a simple, straightforward and transparent banking model and make clear on our website how we operate and make money. We offer the products and services people tell us they want, with none of the funny stuff people normally associate with traditional banks.
Our 4.7 million customers, award winning mobile and digital banking, nationwide network of branches and 8,600 Partners mean we are big enough to make a difference, but small enough to be an agile challenger to the entire market.
For further information about TSB Bank plc, please visit our website www.tsb.co.uk .