Membership Reward continues for loyal members
Britannia, one of the country’s leading mutuals, is reducing its standard variable rate (SVR) for all borrowers by 0.40 per cent
The move will bring down the SVR from 6.50% to 6.10% - among the lowest in the industry — assuming no further changes in the Bank of England base rate before 1 December 2004.
In offering one low rate to all borrowers, Britannia will be removing the discounts it currently offers some borrowers. Those who are currently paying SVR and have had their current mortgage for five years receive a 0.20% discount, and those who have had their mortgage for ten years receive a 0.40% discount.
The building society has written to all borrowers who have a SVR mortgage, or who will switch to SVR at the end of a special offer, giving them the required three months notice of the change, which will take effect on 1 December 2004.
"Britannia’s aim is to give our savers and borrowers consistently good value across the short, medium and long term," explained Tim Franklin, managing director of Britannia’s membership business. "Our members have told us they are a little confused by the current system of discounts, so we are removing them and offering all of our borrowers one great rate."
"Our mortgages have featured in national newspaper best buy tables virtually every week for the last five years. Reducing our SVR means we will go on providing great value to borrowers at the end of any special offer."
Britannia will continue to reward loyal members through its unique membership reward, which returns a share of profits each year. More than a million Britannia members shared £42 million this year, with more than 80,000 receiving £100 or more.
Britannia members have shared £330 million since the reward was launched eight years ago. Maximum potential payouts to individual members have totalled £4,000 in that time, and the average amount received is £312.
