| Currently on Standard Variable Rate (SVR)? |
Find out more about our
Standard Variable Rate. |
| Currently on Homeowner Variable Rate (HVR)? |
Find out more about our
Homeowner Variable Rate. |
| Currently on Buy-to-Let Variable Rate (BVR)? |
Find out more about
Buy-to-Let Variable Rate. |
| Currently on a Tracker Mortgage? |
A tracker mortgage is a variable rate mortgage. The difference between these and other variable rate mortgages is that they follow, or track, the movements of another rate, most commonly the Bank of England Base Rate.
If your mortgage is affected by the rate change, we will write to confirm your new payment. Any change in interest rates will usually take effect from the first of the month following the Bank of England’s announcement. |
| Currently part of the Annual Instalment Review (AIR) scheme? |
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. We’ll let you know your new payment for the next 12 months when we send you your annual mortgage statement. |
Currently on a Fixed Rate Mortgage?
|
If you’re on a fixed-rate mortgage your payments will stay the same for the fixed-rate period, as the rate you’re paying does not move in line with the Bank of England Base Rate. The benefit of a fixed rate is that it removes the uncertainty of the rate going up; of course the Bank of England base rate could go down during the fixed rate period |
If you’re concerned about the impact of significant interest rates changes in the future, please contact one of our qualified Mortgage Advisors who’ll be able to discuss your options. Please call 0800 056 1088. Lines are open from 8am – 8pm Monday to Friday and 9am – 4pm on Saturdays.
The table below may help you to understand how an increase in interest rates could affect your monthly payments. The numbers are for illustrative purposes only.
Customers with an Interest Only Mortgage
Customers with an Interest Only Mortgage
| Total borrowed |
Term |
Interest rate increase |
Monthly payment increase |
| £10,000 |
5 years |
0.25% |
£2.08 |
| £50,000 |
10 years |
0.25% |
£10.42 |
| £125,000 |
15 years |
0.25% |
£26.04 |
| £200,000 |
20 years |
0.25% |
£41.67 |
Customers with a Repayment Mortgage
Customers with a Repayment Mortgage
Total borrowed
|
Term
|
Interest rate increase |
Monthly payment increase for SVR customers
|
Monthly payment increase for HVR customers |
| £10,000 |
5 years |
0.25% |
£1.10 |
£1.13 |
| £50,000 |
10 years |
0.25%
|
£5.71 |
£5.96 |
| £125,000 |
15 years |
0.25%
|
£14.79 |
£15.73 |
£200,000
|
20 years |
0.25% |
£24.53 |
£26.50 |
Do I need to take any action?
If you have a variable rate mortgage which is impacted by a rate change, we’ll write to you to let you know what your new monthly payment will be and what action you need to take. The letter will arrive before the change takes effect, usually on the first day of the month following the announcement of the change.
Payments by standing order
If you pay your mortgage by standing order, you’ll need to contact your bank to amend the amount from the date shown on your rate change letter. Unfortunately this can’t be done by us on your behalf, so you may find it easier to pay by Direct Debit instead.
Payments by Direct Debit
If you pay your mortgage by Direct Debit there’s no need to take any action. The new amount will be collected as usual.
Payments by cash or cheque
If you pay your mortgage by cash or cheque, simply adjust the amount(s) that you send to us each month.
What if I’m on an instalment or payment break?
If you’re on an agreed Instalment Break or Payment 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.