Bank of England Base Rate 

On 2 August 2018, the Monetary Policy Committee (MPC) voted to increase the Bank of England (BoE) Base Rate from 0.50% to 0.75%

What does this mean for my client?

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.


 

Q: What if my client has a tracker rate mortgage?

A: Most tracker rate mortgages will increase by 0.25% in line with the terms from 9th September 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).

Q: How will my client find out if their tracker rate is changing?

A: If their interest rate is affected by the Bank Base Rate increase we will be writing to them shortly after 9th September advising them of their new monthly payment.

Q: When will you be changing your Standard Variable Rate?

A: We are currently reviewing our mortgage rates and we’ll update our website as soon as we have made a decision.

Q: What is the Bank of England Base Rate?

A: 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.

Q. What is a Bank of England Rate change?

A: 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).

Q: When was the last Bank of England rate change?

A: The last time the Bank of England changed Base Rate was 2 November 2017 when it increased from 0.25% to 0.50%.