Bank of England Base Rate change

The Bank of England (BOE) decreased the base rate from 4.00% to 3.75% on 18 December 2025.

Good news for Tracker mortgages

We'll be reducing the rate on our tracker mortgages by 0.25% on 11 January 2026. We'll write to customers if they're affected.

Tracker mortgage payments won't change until March 2027, unless customers contact us.

If customers want their payments to be recalculated based on the new rate, they can request a payment recalculation online.

Standard Variable Rate (SVR) mortgages

Our SVR is currently under review. We'll update our website if the interest rate changes and write to customers if they're affected.

Fixed rate mortgages

There is no change to fixed rate mortgages.
 

General FAQs

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.
The Bank of England’s Monetary Policy Committee (MPC) changes the base rate. It's part of the action they take to keep inflation low and stable.

The previous base rate change was 7 August 2025 when it decreased from 4.25% to 4.00%.

We'd review the impact of any further base rate changes along with the market and other economic factors at the time. It may impact our mortgage interest rates.

The Bank of England’s Monetary Policy Committee regularly reviews the base rate (normally monthly) to determine whether a change is needed.