Bank of England Rate Change

FAQs: Bank of England Rate Change

• What is the Bank of England base rate?

  The Bank of England base rate is used throughout the financial services industry when calculating mortgage interest rates. Th​e base rate can move up or down is reviewed on a regular basis by the Bank of England's Monetary Policy Committee. 
  
  As from Thursday 2nd August 2018, the Bank of England increased its base rate from 0.50% to 0.​75%, leading many banks and building societies to ​review their mortgage and savings interest rates ​in light of this change.

• What impact will the Bank of England interest rate change have on my mortgage payments?

  Fixed rate mortgage customers will see no change to their monthly mortgage payments as fixed rate products offer stability against interest rate fluctuations. Mortgage payments remain unchanged until the expiry of your fixed rate period. ​We will write to you before this fixed rate period expires with ​your new mortgage options. 
  
  For customers with a standard variable rate mortgage or a discounted variable rate mortgage (which is linked to the Society's standard variable rate), ​you will be notified in writing in due course should your interest rate change. 

• I am concerned that my monthly mortgage payments may increase. What are my options?

  We are currently reviewing the impact that this ​announcement will have upon our ​​mortgage and savings accounts, and we will support our members through this change. If you are worried that you may not be able to afford an increased monthly mortgage payment, we're here to help. Please click here to see how we can support you.
  
  Alternatively, please click here for advice on paying your mortgage from the Building Societies Association and the Money Advice Trust 

• Will the interest rate on my savings account change?

  We are currently reviewing the impact the Bank of England base rate change will have on our savings accounts, and we will notify you in writing if the interest rate applicable to your account changes. 
  
  Please note: if you have a fixed rate savings account, the interest rate your savings earn will not change during the fixed rate period.