We will be reducing the rates for those customers on bank base rate tracker products and we are also reducing our standard variable rate (SVR) to 4.49%.
We are continuing to review how these changes will impact our variable rate mortgages.
The questions and answers below are designed to give you the latest information available.
If you want to contact us immediately, please call us on 0345 166 9300. Please note that during rate change periods, our lines can become very busy.
I have a tracker product when will my interest rate change?
If you're an existing customer with a base rate tracker product, your interest rate may decrease on 12th April. Whether your interest rate decreases depends on whether you have already reached the minimum interest rate (also known as a floor or collar) on your product. Don’t worry, we will write to you if you are affected.
I am currently on the standard variable rate (SVR) when will my interest rate change?
If you're an existing customer on our standard variable rate, your interest rate will decrease on 19th April.
I have a SVR discount product when will my interest rate change?
If you're an existing customer with a SVR discount product, your interest rate may decrease on 19th April. Whether your interest rate decreases depends on whether you have already reached the minimum interest rate (also known as a floor or collar) on your product. Don’t worry, we will write to you if you are affected.
When will my mortgage payment change?
If you have a fixed rate mortgage with us, your payment won’t change during the fixed rate period.
If you have a variable rate mortgage, tracker or other mortgage that does not have a fixed rate, any change in payment won’t take effect until your account is reviewed at the end of the year. Any change to your monthly payment will then be applied in March 2021. This means that you will be charged the lower interest rate but your current monthly payment won’t change until March 2021. We will tell you about your new monthly payment in your mortgage statement.
If this affects you and you want to change your payment before March 2021, you can request this by
For more information on the annual account review process, please refer to your ‘How Your Mortgage Works’ booklet, which was included with your mortgage offer.
We have announced that we will be reducing our savings rates by up to 0.50%. The date of that change will be 05/04/2020.
Under our Terms and Conditions, our savings customers who are affected by this reduction will be contacted, giving 14 days’ notice of the reduction. We have detailed the changes here and will publish changes on our website from the effective date.
As a result of the second rate reduction on the 19 March 2020 we have made a further set of changes to some of our savings rates. These reductions reflect that the Bank of England Base Rate is at an all-time low. We have set a lowest rate of 0.10% on certain accounts. The details of the changes can be found here and will be effective from 20 April 2020.
Will the rate on my fixed rate savings product change?
No, the rate will remain on the fixed rate product until the end of the term. Fixed rate savings products guarantee a specific, agreed interest rate for a specified time period. This is in accordance with the terms and conditions of the account. Therefore, fixed rate accounts are not affected when the Base Rate rises or falls.
What is the outlook for long term for savers?
Savings rates are affected by a number of complex economic factors, including the Base Rate, currency values and economic and political events. It is therefore difficult to predict exactly what will happen to savings rates.
For more information on our complete range of savings products click here.
Why have you announced a second rate cut on savings accounts?
Bank Base Rate is one of the factors that influence the rates which are offered on savings accounts. Others include the strength of mortgage lending, the wider economic and political status and the regulatory requirements which financial institutions have to adhere to.
With Base Rate at an all time low the changes we have announced reflect both this together with the wider economic climate.
What is the Bank of England
(BoE) Base Rate?
The BoE Base Rate is the rate of interest that the Bank of England charges banks and building societies when they borrow money. As a result it underpins the way that financial institutions obtain funding to provide mortgage and savings products. Any change to Base Rate, may impact the interest rates on those 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 last Bank of England Rate change?
The last time the Bank of England changed Base Rate was 2 August 2018 when it increased from 0.50% to 0.75%
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 on a monthly basis) to determine whether a change is required.