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Bank of England Base Rate and your mortgage
When the Bank of England change their base rate, this can affect your mortgage if you have a variable interest rate. Find out what changes to the base rate mean for your mortgage.
Current Bank of England Base Rate
The current Bank of England Base Rate is 4.5%.
Mortgage interest rate calculator
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.
Current mortgage balance
You can find your mortgage balance in your most recent annual mortgage statement.
You'll need to take into account any payments made on your mortgage since the date of the statement. If you've fallen behind with your payments on any part of your mortgage that is a repayment mortgage, you'll need to take off the amount of arrears from the current balance.
Important: If you have a mortgage made up of part repayment and part interest only, you'll need to do a separate calculation for each.
Remaining term
The length of time you have left to pay back your mortgage.
You can find your remaining term details in your most recent annual mortgage statement.
Important: Please check the remaining term on your main account and each sub account.
Current interest rate
This is the interest rate for your sub account on the date shown.
You can find your interest rate details in your most recent annual mortgage statement.
Important: Please check the interest rate on your main account and each sub account.
Interest rate change
Use the + or - buttons to add and deduct amounts of 0.25%. Or just type in the rate change percentage you'd like to see illustrated.
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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.
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If your mortgage has more than one sub-account and some are on variable rates, you’ll need a separate calculation for each one. Add each sub account calculation together to work out the total change to your monthly payment.
You can find out if you have sub accounts on your most recent yearly mortgage statement.
If there’s a rate change and it affects your mortgage, we’ll write to you confirming your new monthly mortgage payment before we take it.
How do base rate changes affect your mortgage repayments?
When the base rate goes up, your mortgage repayments may go up. If it goes 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’ve taken out:
- Fixed rate mortgage - A mortgage with a fixed interest rate for a set period. This means the base rate won't affect your rate when it goes up. But if the base rate goes down, you won’t pay any less.
- Tracker mortgage - Linked to the Base Rate. Your interest rate will change if the Base Rate goes up or down. This means your monthly payments can go up or down as well.
- Lender variable rate - A variable interest rate your rate reverts to when your current mortgage deal ends – unless you have agreed to a new deal. Your interest rate will go up or down if we change our lender variable rate.
Want to see which mortgage rate options we offer?
Compare mortgage rates
What are my next steps?
Has a Bank of England Base Rate change affected your mortgage rate and monthly repayments? There are a few things you can do.
Let’s look at the details
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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’ve made plans to take out extra borrowing, a rate change won’t affect any amount that is on a fixed rate. This is because the rate change will only impact variable rates.
For extra borrowing at a variable rate, any offer will show the interest rates that applied at the time the offer was made. If we change the variable rate after we issue the offer, we won’t write to you until you complete. When you complete, the letter will show a new monthly payment and interest rates that will apply.
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If you’ve made plans to switch to a new fixed rate product, this won’t change in line with our variable mortgage rate changes. But, a rate change could affect a part of your existing mortgage if it has a variable rate.
If so, we’ll work out the monthly payment on any parts of the mortgage charged at a variable interest rate. We’ll then add them to the parts with fixed interest monthly payments to give you a new total monthly payment.
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As tracker rates are linked to the Bank of England Base Rate, your mortgage rate will change in line with the base rate. We’ll get in touch to tell you of the changes to your monthly payment amount.
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If you’re moving to a new deal and the new rate isn’t applied yet, just let us know you no longer want it. You can also still change your mind if you tell us within 28 days of the new rate taking effect.
You could lose your home if you don’t keep up your mortgage repayments
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