Butterfield reduces interest rate on loans – The Royal Gazette | Bermuda News, Business, Sports, Events, & Community

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Butterfield reduces interest rate on loans

Butterfield Bank is to lower the interest rates it charges on personal loans and mortgages.

The decreases, announced yesterday after stock markets closed, are in step with the recent 25 basis point decrease in the federal funds rate in the United States.

The base rate for Bermuda dollar residential mortgages and consumer loans will decrease by 0.25 of a percentage point to 5.25 per cent.

The rate decrease on personal loans is effective immediately, while the lower rate for Bermuda residential mortgages will be effective on December 6.

For a borrower with a $200,000 mortgage, for example, the quarter-point reduction translates into a reduction of $41.66 in their monthly interest payment.

Butterfield said it is reviewing rates paid on fixed-term deposits and may make adjustments to some products as a result of the fed funds rate change. Details of any changes will be made available online and at Butterfield banking centres.

Michael Neff, managing director, Bermuda, for Butterfield said: “Last week, the US Federal Reserve lowered its overnight rate by 25 basis points. We are pleased to pass on the benefits of that decision by lowering interest rates for our personal banking customers who borrow from us at rates linked to the bank's Bermuda dollar base rate.”

For information regarding loan rates and payment terms, customers should contact the bank's consumer credit department on 298-4799, or their relationship managers

Boost for borrowers: Butterfield has cut the interest rates on its personal loans and mortgages by quarter of a percentage point (File photograph)

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Published September 24, 2019 at 9:00 am (Updated September 24, 2019 at 9:16 am)

Butterfield reduces interest rate on loans

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