Following a 0.5 per cent decrease in the Bank of England Base Rate, Northern Bank has reduced interest rates on all Base Rate and Standard Variable Rate related products by the full 0.5 per cent providing a welcome boost for Northern Bank customers.
This reduction in interest rates will mean that all Northern Bank customers with business or personal overdrafts along with customers with business loans or mortgages will benefit from the full reduction. Northern Bank customers with tracker mortgages could also benefit if there are further interest rate cuts by the Bank of England in the months ahead as such mortgages do not operate with a collar limit.
Danny Stinton, Head of Personal Products and Planning for Northern Bank, said that borrowers would see their monthly loan repayments reduced and would be better off as a result.
“We are confident that Northern Bank’s customers from the mortgage holder to the small business will see the direct benefits of the interest rate cut. The cut in interest rates comes at an important time in the calendar year for both businesses and consumers who will be using this period to plan expenditure for the year ahead. The hope is that the combined effects of the series of interest cuts over the last number of months will go some way to contributing to the significant task of building both consumer and business confidence in the weeks and months ahead.”
Danny Stinton, Head of Personal Products and Planning for Northern Bank, said that Northern Bank mortgage customers on a typical base rate tracker mortgage of £100,000 will see a reduction of £29.21 in their monthly repayments. He added:
“Northern Bank is committed to ensuring that customers are supported in these challenging times. This is reflected by the recent interest rate reductions and also by our efforts to ensure that customers are well informed and assisted in confidently and prudently managing their finances. The recent measures announced by Northern Bank to provide financial support and guidance to any customer experiencing financial difficulty have been well received by customers.”
Since October 2008 the Bank of England has reduced base rate by 3.5 per cent and Northern Bank Base Rate has reduced by the same amount to now sit at 1.5 per cent. In the same period Standard Variable Rate has been reduced by 2.6 per cent to now sit at 4.55 per cent.