Bank of England Base Rate rise

On Thursday 2 November 2017, the Bank of England increased the Base Rate of Interest by 0.25%. This means the Base Rate is now 0.5%.

If you are a customer with a Bank of England Base Rate Tracker mortgage or loan, your interest rate will increase by 0.25% in line with the Terms & Conditions of your account.

We are also increasing our Standard Variable Rate (SVR) by 0.25%.

This change will take effect on either 1 December 2017 or 1 January 2018 in line with the Terms & Conditions of your account. We will confirm the date when the new interest rate will apply when we write to you.

If you are affected by an interest rate change, we will write to you before any change to the interest rate or monthly payment that applies to your account. This letter will confirm both the date when the new interest rate will apply and the specific impact on your monthly payment. Until we send a letter to you, there is no need for you to take any action.

Please find answers to a number of customer questions below to help explain the potential impact of the interest rate change on your mortgage. Or, to see how your monthly payment might be affected, try our easy-to-use Rate Rise calculator.

Please read this information before contacting us with a query.

Customer Questions & Answers

Will my interest rate change?

If you are a customer with a Bank of England Base Rate Tracker mortgage or loan, your interest rate will increase by 0.25% in line with the Terms & Conditions of your account.

We are also increasing our Standard Variable Rate (SVR) by 0.25%.

What will my new interest rate and monthly payment be?

We will write to you before any change is made to your interest rate to confirm the specific impact on your monthly payment. There is no need for you to do anything before this letter arrives. To see how your monthly payment might be affected now, you can try our easy-to-use Rate Rise calculator.

The impact of the interest rate change on your monthly payment will depend on a number of factors, such as the type of mortgage you have, the current balance and remaining term.

When will my interest rate and monthly payment change?

For the majority of customers this change will take effect from 1 December 2017, although for some NRAM accounts the change will take effect from 1 January 2018.

If you are a customer with a Bank of England Base Rate Tracker mortgage or loan, your interest rate will increase by 0.25% in line with the Terms & Conditions of your account.

We are also increasing our Standard Variable Rate (SVR) by 0.25%.

Do I need to do anything now?

You do not need to take any action at this stage and should continue to make your monthly payments as usual.

We will write to you ahead of any change to your interest rate or monthly payment. This letter will confirm both the date when the new interest rate will apply and the specific impact on your monthly payment. Until we send a letter to you, there is no need for you to take any action.

What if I am struggling to afford my monthly payments?

If you are worried about making your mortgage payments, you should call us immediately. The sooner you speak to us, the more we can usually do to help. We will always consider your personal circumstances and be fair and considerate at all times.

Alternatively, you can visit our Personal Support section for details of how we can help and details of a number of independent organisations offering free support and advice who can help you keep your finances on track. They provide impartial information and support if you are experiencing (or anticipate) financial problems.

Can I fix my interest rate or change to a better deal?

Since nationalisation we have been closed to new business so are unable to offer any new deals, such as fixed rates, to customers. However, our online 'DealFinder' tool can help you search the market to find and compare mortgages from other lenders. Visit DealFinder.

What if my account is already in arrears and I am behind with my payments?

This depends on the method you use to make your payments and whether you are currently repaying your arrears with an additional amount each month as part of an agreed payment arrangement.

If you do not pay by Direct Debit, you need to arrange to change the amount you pay.

If you are unsure what to do, or think you may struggle to meet either your regular monthly payment or the additional arrangement amount, then please contact us immediately so we can try to help you. We will always take your particular circumstances into account and treat you with fairness.