Bank of England Base Rate
What does this mean for me?
As a result of the base rate change, we are currently considering our position on how this change will affect our mortgage customers, balancing the needs of our customers and the Society.
We'll give an update here as soon as we've made a decision.
What is the Bank of England (BoE) Base Rate?
The BoE Base Rate is the rate of interest the Bank of England charges banks and building societies when they borrow money. As a result it underpins the way that financial institutions obtain funding to provide mortgage and savings products. Any change to Base Rate, may, impact the interest rates on those products.
What is a Bank of England rate change?
This is when the Bank of England’s Monetary Policy Committee (MPC) determines that – in the best interest of the overall economy - that the Bank of England’s Base Rate needs to be adjusted from its current rate (this can either be an increase or a decrease).
What was the last Bank of England rate change?
The last time the Bank of England changed Base Rate was 2 November 2017 when it increased from 0.25% to 0.50%.
If you have a tracker rate mortgage
Most tracker rate mortgages will increase by 0.25% in line with the terms from 30th August 2018 (however some accounts have already reached their minimum floor and won't see an increase until the base rate has passed above the rate set out in your offer).
How will I find out if my tracker rate is changing?
If your interest rate is affected by the Bank Base Rate increase we will be writing to you in August. If your account is on immediate payment change, you will be advised of your new monthly payment shortly after the change is effective.
When will I see my payment change on my mortgage if my account is on 'annual account review'?
Any change in payment will not take effect until your account is reviewed at the end of this year. Any change to your monthly payment will then be applied in March. This means that you will be charged the higher interest rate but your current monthly payment will not reflect this increase until March. We will advise you of your new monthly payment in your mortgage statement. If this affects you and you want to change your payment before March, you can request this by calling us on 0345 300 2522. For more information on the annual account review process, please refer to your mortgage offer.
I have a Secured Personal Loan - will this be affected by the increase?
The interest rate on the Secured Personal Loan will increase on 16th August, you will be notified shortly after of your new payment.
When will you be changing your Standard Variable Rate?
We are currently reviewing our mortgage rates and we'll update our website as soon as we have made a decision.