Atom Bank has stated that it will not reflect the Bank of England’s base rate increase onto its standard variable rate (SVR).
The lender maintained its SVR at 6.99%, despite the 0.50% hike to the base rate.
Lenders including Santander have raised rates in line with the bank of England’s decision.
Atom Bank noted that some banks now have SVRs hitting 8.74%, which would likely increase further in the aftermath of today’s announcement.
The lender estimated that its choice not to pass on the rate rise to SVR mortgage customers would save borrowers an average of £454 annually.
Mark Mullen, CEO at Atom bank, said: “Atom is a new type of bank that does things differently. We don’t trade on customer inertia in the name of profit like the incumbent banks.
“While SVR offers flexibility to customers, which does demand a premium, it’s clear that many high street banks are using the current environment to widen margins on both sides of their balance sheet.
“Their low easy access savings rates are well documented, and it’s clear they are also using SVR as another tool to squeeze profits from customers.
“We have no intention of piling more misery on customers at this time. We’re holding our SVR to remain one of the lowest around, saving them a few hundred pounds a year, while passing on the rate rise to savers to ensure everyone gets a better deal.”
