Variable Rate Ceiling Information


From the late 1990’s to 2008, some of the Society’s mortgages included a variable rate ceiling guarantee. As you may be aware this guarantee was withdrawn in February 2010.

We wrote to our impacted borrowers in December 2009 to explain if, and how their mortgage is affected and told them what measures needed to be in place for the ceiling to reinstated.

The measures at that time were as follows:-

  • The Bank base rate is above 2.70% and
  • The Bank base rate minus the quoted household branch based instant access rate is more than 2.50% for a 3 month period.

You can see the performance of this measure by clicking here

On 1 January 2013, the Bank of England ceased to publish the quoted household branch based instant access rate referred to above. An alternative (very similar) Bank of England measure has been identified as a replacement rate; however this rate has been consistently higher than the discontinued rate over the time period when both rates were published simultaneously. As a result the criteria for the reinstatement of the ceiling have been redefined and are set out below.

  • The Bank base rate is above 2.70%; and
  • The Bank base rate minus the quoted household branch based instant access rate is more than 2.27% for a 3 month period.
Date End month official Bank Base Rate

Monthly Interest Rate of UK Monetary financial institutions (excl Central Bank) sterling instant access deposits excluding unconditional bonuses from households (in percent) not seasonally adjusted (IUMB6VK)

Differential against Bank Base Rate Status
31-Jan-2014 0.5 0.47 0.03 Exceptional Circumstances still exist
28-Feb-2014 0.5 0.49 0.01

Exceptional Circumstances still exist

31-Mar-2014 0.5 0.49 0.01 Exceptional Circumstances still exist
30-Apr-2014 0.5 0.49 0.01 Exceptional Circumstances still exist
31-May-2014 0.5 0.49 0.01 Exceptional Circumstances still exist
30-Jun-2014 0.5 0.48 0.02 Exceptional Circumstances still exist
31-Jul-2014 0.5 0.42 0.08 Exceptional Circumstances still exist
31-Aug-2014 0.5 0.42 0.08 Exceptional Circumstances still exist
30-Sept-2014 0.5 0.42 0.08 Exceptional Circumstances still exist
31-Oct-2014 0.5 0.42 0.08 Exceptional Circumstances still exist
30-Nov-14 0.5 0.41 0.09 Exceptional Circumstances still exist
31-Dec-14 0.5 0.42 0.08

Exceptional Circumstances still exist

31-Jan-15 0.5 0.38 0.12 Exceptional Circumstances still exist
28-Feb-15 0.5 0.38 0.12 Exceptional Circumstances still exist
31-Mar-15 0.5 0.38 0.12 Exceptional Circumstances still exist
30-Apr-15 0.5 0.38 0.12 Exceptional Circumstances still exist
31-May-15 0.5 0.40 0.10 Exceptional Circumstances still exist
30-Jun-15 0.5 0.38 0.12 Exceptional Circumstances still exist
31-Jul-15 0.5 0.39 0.11 Exceptional Circumstances still exist
31-Aug-15 0.5 0.39 0.11 Exceptional Circumstances still exist
30-Sep-15 0.5 0.39 0.11 Exceptional Circumstances still exist
31-Oct-15 0.5 0.39 0.11 Exceptional Circumstances still exist
30-Nov-15 0.5 0.39 0.11 Exceptional Circumstances still exist
31-Dec-15 0.5 0.38 0.12 Exceptional Circumstances still exist
31-Jan-16 0.5 0.37 0.13 Exceptional Circumstances still exist
29-Feb-16 0.5 0.33 0.17 Exceptional Circumstances still exist
31-Mar-16 0.5 0.33 0.17 Exceptional Circumstances still exist
30-Apr-16 0.5 0.30 0.20 Exceptional Circumstances still exist
31-May-16 0.5 0.30 0.20

Exceptional Circumstances still exist

30-Jun-16 0.5 0.30 0.20 Exceptional Circumstances still exist
31-Jul-16 0.5 0.30 0.20 Exceptional Circumstances still exist
31-Aug-16 0.25 0.25 0.00 Exceptional Circumstances still exist
30-Sept-16 0.25 0.25 0.00 Exceptional Circumstances still exist
31-Oct-16 0.25 0.22 0.03 Exceptional Circumstances still exist
30-Nov-16 0.25 0.22 0.03 Exceptional Circumstances still exist
31-Dec-16 0.25 0.13 0.12 Exceptional Circumstances still exist
31-Jan-17 0.25 0.13 0.12 Exceptional Circumstances still exist
28-Feb-17 0.25 0.13 0.12 Exceptional Circumstances still exist
31-Mar-17 0.25 0.13 0.12 Exceptional Circumstances still exist
30-Apr-17 0.25 0.13 0.12 Exceptional Circumstances still exist
31-May-17 0.25 0.13 0.12 Exceptional Circumstances still exist
30-Jun-17 0.25 0.13 0.12 Exceptional Circumstances still exist
31-Jul-17 0.25 0.12 0.13 Exceptional Circumstances still exist
31-Aug-17 0.25 0.12 0.13 Exceptional Circumstances still exist
30-Sept-17 0.25 0.11 0.14 Exceptional Circumstances still exist
31-Oct-17 0.50 0.09 0.36 Exceptional Circumstances still exist

Source: Bank of England

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