Mortgage support
Worried about paying your mortgage? We have various ways that we can help you.
Mortgage interest rate calculator
The mortgage interest rate change calculator below can show how much your monthly repayments could go up or down, based on changes to your interest rate.
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The Bank of England base rate is an interest rate that has an impact on mortgage rates. The base rate, or ‘bank rate,’ is the cost at which banks can borrow money from the Bank of England.
Banks and Building Societies tend to charge their customers the base rate plus a bit to borrow from them, including for mortgages.
Why does the Bank of England change the base rate?
The Bank of England changes the UK base rate to try to keep the cost of living – ‘inflation’ – at a steady rate.
It reduces interest rates when the economy is not doing well and people may be finding it hard to pay bills and mortgages. The base rate is a major factor in mortgage interest rates.
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When the base rate goes up, your mortgage repayments may go up. When they go down your mortgage repayments may go down.
Whether the base rate impacts your mortgage repayments or not will depend on the type of mortgage that you have taken out:
- A fixed-rate mortgage. A mortgage with a fixed interest rate means it won’t be affected when the base rate goes up. If the base rate goes down, you won’t pay any less, however.
- A variable-rate mortgage. You are likely to be placed onto a SVR mortgage when your mortgage deal comes to an end. This increase isn’t likely to be as high as it is for those on a tracker mortgage, but it could still impact what you pay.
- A tracker mortgage. Tracker mortgage repayments are usually tied to the base rate plus a certain percentage. So, if the base rate rises by 0.25% for example, your repayments will increase by this amount. If the base rate goes down, you could pay less.
There are different types of mortgage interest rates and each work in different ways. We’ve explained the differences below so you can choose the one best suited to your needs.
If you decide to take out a new fixed interest rate with us, we may charge you a fee, called a product fee. If you’re an existing customer, you won’t usually pay legal fees or need a new valuation, even if you switch when your current rate ends.
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Fixed interest rate
Variable interest rate -
Lender variable rate
Variable tracker rate -
Tracker rate
Fixed interest rate
What are the different types of rates?
Variable interest rate -Lender variable rate
Your interest rate stays the same for a set amount of time.
At the end of the fixed rate period, we’ll change you to another rate. This is usually one of our variable rates.
Variable tracker rate -Tracker rate
We set our lender variable rate and we can change it, but it will only go up if there’s a:
- change to our cost of lending or
- change to laws and regulations.
Your interest rate is linked to the Bank of England base rate and changes if the base rate does.
Your interest rate will be made up of the base rate plus or minus a percentage.
Fixed interest rate
Can my interest rate change?
Variable interest rate -Lender variable rate
No, not during the fixed rate period.
Variable tracker rate -Tracker rate
Yes, your interest rate will go up or down if we change our lender variable rate.
Yes, your interest rate will change if the base rate goes up or down.
Fixed interest rate
Can my monthly payments change?
Variable interest rate -Lender variable rate
We may update your monthly payment amount each year to make sure your payment is on track. For example, if you’ve made an overpayment.
Variable tracker rate -Tracker rate
Yes, your monthly payment can change if rates go up or down. If they go up, you could end up paying more than you budgeted for.
Yes, your monthly payment can change if rates go up or down. If they go up, you could end up paying more than you budgeted for.
Fixed interest rate
Will I be charged if I overpay or pay my mortgage off early?
Variable interest rate -Lender variable rate
You may be charged if you repay all or part of your mortgage before the fixed rate period ends. We call this an early repayment charge.
Variable tracker rate -Tracker rate
You won’t usually be charged if you repay all or part of your mortgage.
You may be charged if you repay all or part of your mortgage in a certain amount of time after you take out a new tracker. We call this an early repayment charge.
We’ll let you know before making changes to your interest rate or monthly payments.
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To help you work out which type of mortgage is right for you, here’s some things you might want to think about:
- Would you like to know that your interest rate won’t change for a certain amount of time?
- Could you afford to make higher monthly payments if interest rates go up?
- Would you like to pay more than your usual monthly payment without being charged? You can find out more about Early Repayment Charges.
If you need more information about these types of mortgage rates, you can call us on 0345 603 1637. We’re here Monday to Friday 8am to 8pm, and Saturday 9am to 4pm. If you’d like some independent advice, you may want to talk to a financial adviser.
How our mortgage interest rate change calculator works
Use our interest rate change calculator to help you see how the cost of your mortgage repayments could go up or down.
What you’ll need
- You will need to get your remaining mortgage balance and term from your most recent mortgage statement
- You’ll need to know the interest rate you’ll be moving to
How it works
- First enter your mortgage balance. This is how much you still need to pay to your lender
- Then, the amount of time remaining until your mortgage is paid
- Enter the current interest rate, then your mortgage type
- Click on the plus and minus to choose the interest rate change amount you want to use
Where can I find my mortgage details?
You can find your mortgage details in your most recent annual mortgage statement or from Internet Banking. If you're not registering for Internet Banking yet, it's easy and only takes about 5 minutes to register.
I have more than one sub account, how do I use the calculator?
If your mortgage is made up of more than one sub account and some of these sub accounts are on variable rates, you will need to do a separate calculation for each sub account. To calculate the total change to your monthly payment, add each sub account calculation together.
You can find out if you have sub accounts on your most recent annual mortgage statement.
If a rate change takes place and it affects your mortgage, we will send you a letter confirming your new monthly mortgage payment before it is taken.
What are my next steps?
If your mortgage rate and monthly repayments are changing, then there are a few things you can do...
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You may find that your monthly payment has reduced if you have made overpayments to your mortgage. Your monthly payment will be recalculated based on any overpayments you might have made. This could mean your monthly payment has come down, despite a rise in the interest rate.
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If you have arranged to take out additional borrowing, any amount that is on a fixed rate will not be impacted by a rate change. This is because the rate change will only impact variable rates. If you have arranged additional borrowing at a variable rate any offer will show the interest rates that applied at the time the offer was produced. If we change the variable rate after the offer is issued, we won’t write to you until you complete. When you complete, the letter will contain a new monthly payment and interest rates that will apply.
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If you have arranged to switch to a new fixed rate product, this will not change as a result of a change to our variable mortgage rates. However, there may be part of your existing mortgage which is at a variable rate and this will be affected by a rate change. If this is the case, we will recalculate the monthly payment on any parts of the mortgage being charged interest at a variable rate and add these to the monthly payments on any fixed rate parts to give you a total new monthly payment.
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