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Personal banking > Mortgages > Important information > Bank of England base rate change 

Bank of England base rate change

Announcement made: Thursday 4 September 2008, 12 noon
Bank of England maintains base rate at 5.00%

What happens when the Bank of England base rate changes?

  • The Standard Variable Mortgage Rate may also change.
  • When an announcement is made and there is a change to the Bank of England base rate, any changes affecting the mortgage rates on this website will usually take effect the Monday following the announcement.

What happens to my mortgage?

  • If you are in the Annual Instalment Review scheme, where your monthly mortgage payment changes just once each year - the overall effect of any rate changes during the year will be taken into account at the next annual review, and we’ll let you know your new payment for the next 12 months when we send you your annual mortgage statement.
  • If you are not in the Annual Instalment Review scheme and this rate change affects your monthly payment - for example, if you have a variable-rate mortgage, which includes tracker mortgages - we’ll write to you to let you know when the change takes effect and what your new payment will be.

My payments have changed, what should I do?

  • If you pay your mortgage by standing order, you will need to contact your bank to amend the amount from the date shown on your rate change letter. Unfortunately this cannot be done by us on your behalf, so you may find it easier to pay by Direct Debit.
  • If you pay your mortgage by Direct Debit there is no need to take any action, the new amount will be collected as usual.
  • If you pay your mortgage by cash or cheque simply adjust the amount(s) that you send to us month.
  • If you are on an agreed ‘Instalment Break’ the new interest rate will be applied to your account from the date shown on your rate change letter. Once your break comes to an end, the revised payment amounts will apply.
  • If your payments have increased and you feel that you are unable to meet them please contact our Customer Services Team on 0845 603 1367* who will be able to give you information on the options available.
 

*We may monitor and/or record telephone calls in case there's a need to check that your instructions have been carried out correctly and to help improve our service quality.