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 me?
We will be increasing the rates for our mortgage customers. The questions and answers below are designed to give you the latest information available.
I have a tracker product when will my interest rate change?
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 my mortgage payment change?
If you have a variable rate mortgage and your account is on annual review, your mortgage payment will not change until March 2023. This means that you will be charged the higher interest rate until then. You will be able to request a payment recalculation and we will let you know how to do this when we write to you.
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.