It’s 2007, and mortgage rates start a 77pc plunge
It was inconceivable a decade ago that interest rates would fall so far and for so long. Now borrowers and savers must adjust to a reversal, says Amelia Murray
1.31pc, which was raised to 1.4pc weeks later.
Yorkshire Bank then stepped up with a comparable account offering 1.5pc and Virgin Money introduced a new one-year Isa that paid 1.51pc.
In the past few weeks we’ve seen Charter Savings Bank’s paying 1.65pc, trumped by Virgin Money offering 1.71pc, and then taken over by Charter Savings a week later with an account paying 1.72pc.
During the same few weeks Charter Savings Bank’s market-leading
which paid 1.7pc, was pushed to second place by a new 40-month Isa from Yorkshire Bank offering 2.2pc. This has now been withdrawn and the top rate is from Coventry Building Society at 2pc. At the start of September the top paid 2.15pc. Now Virgin Money offers 2.4pc.
three-year Isa, two-year Isa, five-year Isa easy-access
The range has seen little movement since June when Ulster Bank, the Northern Ireland arm of RBS, introduced a new account that paid a top rate of 1.25pc.
At the end of September there was a slight increase when Charter Savings Bank introduced a new account offering 1.26pc – and weeks later RCI Bank began paying 1.3pc.
The top easy-easy access accounts now pay almost 10 times the average.
At the end of August, Atom Bank, the mobile-only provider, launched a marketleading range of savings bonds that offered the highest rates since March.
Atom’s one, two and three-year fixed deals paid 1.95pc, 2.1pc and 2.25pc respectively. Its five-year bond u d ddi
It was the year Tony Blair and his family left Number 10; flooding engulfed many English towns; and the Spice Girls came together again for their first tour in eight years. But 2007 was also the last time Bank Rate was increased