Dudley Building Society is one of the few lenders not passing on the recent Bank of England base rate rise to its mortgage customers.
The building society said both its standard variable rate, and other mortgage products would be kept on hold. The only exception to this is the building society’s tracker rate deals.
Dudley Building Society chief executive Jeremy Wood says he hopes this decision gives more choice to brokers, and their clients.
He says: “No doubt our broker partners are busy working with clients to ensure their current product provision suits their needs.
“We are expecting a number of borrowers who haven’t really reviewed their mortgage in a number of years while rates have been so low, to seek out the best solutions available via brokers.”
The building society has seen an “unprecedented demand” for fixed rates: with more than 80 per cent of UK new lending now arranged on this basis.
But Wood adds: “We are expecting a little more stability in the market, which is why we have been keen to ensure we hold the rates across our whole range – real choice needs to remain the driving force for brokers and borrowers.”
He says: “We are keen not to add to the concerns of brokers and their clients following some of the scaremongering that we saw last week.
“I felt some of the mainstream media coverage was almost mis-leading, and wasn’t not helping borrowers understand that base rate and standard variable rates are not on and the same, nor intrinsically linked.”
Dudley Building Society says it will continue to review is product range on an ongoing basis to ensure the lender meets the needs of the brokers they work with, and its members.
Most high street lenders – including Barclays, Santander, Nationwide BS and HSBC – have increased their SVRs by 0.25 per cent following the Bank of England’s decision to raise interest rates to 0.5 per cent at the start of November.
Other building societies have kept rates on hold. This includes Skipton Building Society, and its two lending subsidiaries, Amber Home Loans and North Yorkshire Building Society.
Meanwhile Accord has aligned its SVR to the rest of the Yorkshire Building Society group, whom it is owned by. This means its SVR will reduce by 0.35 per cent.