What is the Bank of England Bank Rate?
It is the official Bank Rate set by the Bank of England and it affects the interest rates offered by Banks, Building Societies and other financial institutions. By changing the official Bank Rate, the Bank of England seeks to influence overall borrowing in the economy.
The interest rate on a Base Rate Loan will fluctuate in line with changes to the Bank of England Bank Rate – the rate of interest may increase or decrease over the committed term of the loan and this will affect the total repayment amount.
The current Bank of England Bank Rate is 0.10% (effective from 19 March 2020).
If you believe you may be heading into financial difficulties, or are struggling to meet your monthly financial commitments, please don’t ignore the problem, we can help provide you with support.
When the Bank Rate changes this could affect your payments on any borrowing you may have taken with us, such as loans or overdrafts.
If you have a product where the interest rate directly tracks the Bank of England Bank Rate, the interest rate we charge you will always move in line with the changes to the Bank Rate.
If you have a product where the interest rate is fixed, a change in the Bank Rate won’t affect the fixed interest rate during the fixed rate period. However, the interest rate you move to after the fixed rate period ends may be variable, and therefore could change in response to changes in the Bank Rate.1
Use our ‘rate change calculator’ below to work out how a change in the Bank Rate could affect your loan repayments and business finances.
1There is always a possibility that interest rates may go down leaving a fixed rate loan at a higher level compared to a variable rate loan. However, if interest rates rise, a fixed rate loan will remain at the same rate.
Rate Change Calculator
Making additional payments
While the Bank of England Bank Rate remains low, you may want to consider making additional payments if your account allows it. Making additional payments will reduce the amount you owe and the amount of interest we charge. It could also help reduce the impact of future interest rate rises on your payments. This is because when we recalculate your monthly payment, we base it on your current balance, which includes any overpayments you have made. This means the increase in your monthly payment will be less than if you had not made any additional payments.
Fixing your interest rate
If you would like the security of knowing that your interest rates won’t change for a set period of time, even if the Bank of England Bank Rate and our variable rates go up, you could consider switching to a fixed rate product.
With some types of products, there may be an arrangement fee if we agree to transfer all or part of your loan to a new product. You will be issued with documentation detailing any charges like this which may apply.
What happens when the Bank of England announces a Bank Rate change?
- For our existing customers any change in interest rate will usually take place immediately following the Bank of England’s announcement
When the Bank Rate changes, notices will be placed in a selection of national newspapers, on our website, and in our branches within three business days of Bank of England’s announcement.
Managing your loan or overdraft online
You can check your loan or overdraft balance, monthly payments and interest rate with Business Internet Banking. Log on to Internet Banking.
If you are not registered for Internet Banking yet, you can register with our simple three-step registration process. Find out how to register.
Re-financing your loan
On the phone
0345 072 5555
Call us to talk to one of our business management team. We are available from 7am to 8pm Monday to Friday and 9am to 2pm Saturday.
Re-financing your loan
ANY PROPERTY GIVEN AS SECURITY, WHICH MAY INCLUDE YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR OTHER DEBTS SECURED ON IT.
Overdrafts are repayable on demand.
All lending is subject to a satisfactory credit assessment and we will need your permission to carry out a credit check on you and your business.
You should not apply for an amount that you cannot comfortably afford to repay now and in the future to avoid the possibility of legal action.
Important legal information
Lloyds Bank plc. Registered office: 25 Gresham Street, London EC2V 7HN. Registered in England and Wales No. 2065. Lloyds Bank plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under registration number 119278. Telephone: 020 7626 1500
There is always a possibility that interest rates may go down leaving a fixed rate loan at a higher level compared to a variable rate loan. However, if interest rates rise, a fixed rate loan will remain at the same rate.
Calls may be monitored or recorded in case we need to check we have carried out your instructions correctly and to help improve our quality of service.
Eligible deposits with us are protected by the Financial Services Compensation Scheme (FSCS). We are covered by the Financial Ombudsman Service (FOS). Please note that due to FSCS and FOS eligibility criteria not all business customers will be covered.