Leek United raises rates for borrowers and savers

Leek United raises rates for borrowers and savers

Leek United has increased in its rates for borrowers and savers.

The rise in standard variable rate (STV), which takes effect from Monday 1 October, will affect less than half of mortgage customers, the society said.

David Hollingworth, associate director at London and Country, said the rate increases were in response to the Bank of England’s base rate increase earlier this year.

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He said: "Most lenders have already made their move and save for the odd exception we have tended to see standard variable rates reflect the full 0.25 per cent rise in base rate.

"Some borrowers will already have a fixed rate so this will have no impact but any borrower on their lender’s standard variable rate should take a rise in payments as the trigger for them to review their deal."

He added: "It’s unlikely that the standard variable rate will be the most competitive option for them and they could make savings, as well as protecting against further increases if a fixed rate deal suits them."

Many of the society’s savers will see increases of up to 0.25 per cent on their accounts from Tuesday 2 October.

Young savers will also receive the benefits of the change, with a 0.25 per cent increase to rates on the Humphrey, Pyramid max and Junior Isa accounts, the society said.

Meanwhile, the rate on lower tier instant access accounts will increase by 0.15 per cent, and higher tier accounts by 0.05 per cent.

John Kelly, operations director at Leek United, said: "We are pleased to pass on the benefits of the recent base rate rise to the majority of our Savings Members, who can look forward to an improved return on their money.

"At the same time, we are mindful that the rate change also has implications for our mortgage Members; they have our assurance that we will continue to provide them with competitive, value-for-money products at rates that are both fair and sustainable."

There will be no increase to the society’s Isa, regular savings account or deposit/business accounts.