Bank of England base rate update

As you may know, on 19 March the Bank of England further reduced the bank base rate from 0.25% to 0.10%, as part of their ongoing response to the Coronavirus pandemic.

As a result of this announcement we wanted to let you know about changes we are making which may affect your clients. We can now confirm the following:

  • Our Standard Variable Rate (SVR) and Mortgage Variable Rate (MVR) will decrease by 0.35% for mortgage customers, effective from 1 May. Affected customers will receive a letter outlining the changes by 24 April 2020.
  • All customers holding existing mortgage products which track the Bank of England base rate will see their account interest rate change (subject to any product rate floor) in line with their terms and conditions. For most base rate tracker products, rates will be reduced no later than 14 days after the Bank of England’s latest announcement which was on Thursday 19 March.

What's going to happen to the SVR or MVR on my clients mortgage?

Our SVR and MVR will decrease by 0.35% effective from 1 May 2020

Rate Currently From 1 May
MVR Residential 4.99% 4.64%
MVR Buy to Let 5.19% 4.84%
MVR Commercial 5.49% 5.14%
SVR Residential 4.95% 4.60%
SVR Buy to Let 4.95% 4.60%

Base Rate Tracker Mortgages

What's going to happen to the rate on my client's Base Rate Tracker mortgage?

The rate on their Base Rate Tracker mortgage will be reduced in line with the terms and conditions. if the product has a 'rate floor', the rate won't go below this level.

Your client can find out if their product has a rate floor by checking their mortgage offer.

When will the rate change happen?

If your client's Base Rate Tracker was originally from Scarborough Building Society, ex-Holmesdale Building Society or ex-Chesham Building Society mortgage the new rate will take effect from 26 March 2020.

When will monthly payments change?

Monthly payments will change from the 1 April 2020.

Will my client get confirmation of their new rate and payment?

Yes - we'll send a letter within the next 14 days from 19 March which will include all the details they need.