On 3rd November 2022 the Monetary Policy Committee (MPC) voted to increase the Bank of England (BoE) Base Rate from 2.25% to 3.00%.
What does this mean for my clients?
We will be increasing the rates for mortgage customers. The questions and answers below are designed to give you the latest information available.
When will the interest rate change on tracker products?
Our trackers will change on 4th December 2022 and we'll be writing to customers whose rate is increasing.
Will the Standard Variable Rate change?
We have taken the decision to increase our Standard Variable Rate (SVR) by 0.60% and this will happen on 11th December. Our new SVR will be 6.49%. This will affect customers who are on SVR and have a product linked to SVR. We will write to those affected.
When will mortgage payments change?
If the account is on annual review, the mortgage payment will not change until March 2023. We will let customers know how they can request a payment recalculation when we write to them.
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 to borrow money. This affects the interest rates set by those banks and building societies for their customers. Any change to Base Rate, may impact the interest rates on savings and mortgages 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 previous Bank of England Rate change?
The previous Bank of England Base Rate change was from 1.75% to 2.25% on 22nd September 2022.
What happens if the Bank of England Base Rate changes again in the future?
We would need to review the impact of any further Bank Rate changes in the context of the market and other economic factors at any such time.
When could the Base Rate change again in the future?
The Base Rate will change when the when the Monetary Policy Committee determines that the UK economy needs to adjust to remain stable and sustainable.
The Bank of England’s Monetary Policy Committee regularly reviews the Base Rate (normally monthly) to determine whether a change is required.
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