The Coventry has confirmed that it will not be pass on last week’s base rate increase to its Standard Variable Rate (SVR) mortgage customers.
The Bank of England (BoE) increased the Base Rate to 0.75% last Thursday, the highest level since March 2020.
This is the second rise of 2022 and the BoE has signalled there are more to come as it tries to curb inflation.
However, lenders have been reluctant to pass the rises on to SVR borrowers as the UK continues to labour under the cost of living crisis.
Fellow building society The Skipton made a similar pledge to SVR borrowers last week.
Ian Biggs, head of product performance at Coventry Building Society, said: “Following the Bank of England Base Rate announcement, we’re reviewing our variable rate products with a view to increasing the rates on some of our variable savings accounts to maintain our strong competitive position.
“On mortgages, we will not be increasing our Standard Variable Rate.
“However, mortgages that track the Bank of England Base Rate will move in-line with the base rate increase from 1 May 2022.
“We’ll contact our members if there will be any changes to their savings account or mortgage – and any change to savings and mortgages rates will be scheduled for the same day, 1 May.”
