The Society is also launching a new savings account, paying 5.25%, which is available exclusively to existing Portman members.
Commenting on the changes, Matthew Wyles, Portman's Group Development director said, "These changes reflect our determination to distribute the benefits of mutuality in a way which best rewards our most committed and loyal members."
Standard Variable Rate
Portman's Standard Variable Rate will be reduced from 6.74% to 6.50% with effect from 24 August 2005 for new borrowers and 1 September 2005 for existing borrowers.
Savings Rate Changes and New Product Launch
Portman is making a number of changes to its variable with effect from 1 September 2005 and fixed rate savings products with effect from 27 August 2005. The interest rate on the Society's fixed rate savings products will actually be increased as these are dependent on swap rates rather than the Bank of England Base Rate.
The Society has not reduced its variable savings rates since August 2003. In order to be fair to all its members, the Society has considered the competitive position of all its savings products and associated interest rates. The variable rate reductions vary from between zero and 0.45%.
With effect from Saturday 27 August, the Society is launching a brand new savings account for existing members. The Members' Loyalty Account is designed to reward long term membership and pays a highly competitive rate of 5.25%. The rate on this account is guaranteed to be 0.75% above the Bank of England Base Rate for 1 year.
