Bank of England Base Rate increase

The Bank of England (BoE) increased the base rate from 3.50% to 4.00% on 2 February 2023.

Tracker mortgage interest rates will increase on 5 March 2023

We will write to customers to let them know what their new rate will be.


Tracker mortgage payments won't increase until March 2024, unless customers contact us

  • We are writing to customers to let them know
  • To reduce the impact of increased interest on their mortgage balance, customers can increase their mortgage payments sooner by requesting a payment recalculation online.
  • If we don’t hear from them, they’ll be charged a higher rate of interest from 5 March 2023 but we won’t increase their repayments.  
  • As customers would be paying back less interest than they’re being charged, this will increase the amount they owe and could make a considerable difference to their mortgage payments from March 2024.



Standard Variable Rate (SVR) mortgages

Our Standard Variable Rate (SVR) hasn't changed.

Our SVR is increasing by 0.50% to 6.99% on 5 February due to the BoE increase on 15 December 2022. This will affect customers who are on SVR or have a mortgage linked to SVR. We will contact customers if they are affected.

If there are further changes to the tracker rates after 2 February 2023 we will contact customers if they are affected.

 
Fixed rate mortgages

There is no change to fixed rate mortgages.

 

 

General FAQs

What is the Bank of England (BoE) base rate?

The BoE Base Rate is the rate of interest that 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 the base rate, may impact the interest rates on savings and mortgages.

Why does the base rate change?

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.

What was the previous base rate change?

The previous base rate change was from 3.00% to 3.50% on 15 December 2022.

What happens if the base rate changes again in the future?

We would 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.

When could the base rate change again in the future?

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

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