On Thursday 4 August 2016, the Bank of England base rate reduced from 0.50% to 0.25%.
We can confirm the following changes will be effective from the beginning of September:
If your mortgage is affected we will write to you shortly to confirm your new monthly mortgage payment. In the meantime we have some useful information and tools to help you work out how this change might affect you.
What is the Bank of England base rate?
The Bank of England base rate can go up or down and is announced by the Bank of England's Monetary Policy Committee.
Banks and building societies use the base rate when calculating their interest rates for some mortgage products.
The Bank of England base rate is currently 0.25%.
How does the Bank of England base rate affect me?
|Base rate tracker mortgage||If you have a Santander or Alliance & Leicester base rate tracker mortgage it will track above or below the Bank of England base rate, and rise and fall in line with the base rate.|
|Standard Variable Rate mortgage||If you have a Santander or Alliance & Leicester Standard Variable Rate (SVR) mortgage you may be affected by changes to the Bank of England base rate. Santander and Alliance & Leicester SVRs are managed rates and are not directly linked to the base rate. Changes to our SVRs may not be in line with, or at the same time as, changes to the Bank of England base rate, as other factors can also influence the rates we set.|
|Fixed rate mortgage||If you currently have a Santander or Alliance & Leicester fixed rate mortgage, your rate does not change and your monthly payments will remain the same until the end of your mortgage deal. If you're not sure when your mortgage deal ends, you will find it on your latest Annual Mortgage Statement, within the mortgage section in Online Banking or on your original Key Facts Illustration.|
If you're not sure what type of mortgage you have, you can check your original Key Facts Illustration to find out.
What can I do if I am worried about how a change in interest rates will affect me?