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Bank of England base rate change

3rd Aug 2023 3 min read

On Thursday 3 August 2023 the Bank of England base rate increased from 5.00% to 5.25%. As a result of this, we’re reviewing our interest rates.

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Lending Products (including Invoice and Asset Finance)

Variable Rate Loans

If you have a variable rate loan that is linked to the Bank of England base rate then the interest rate will increase by 0.25%, in accordance with the terms of the agreement. This change will be effective from 3 August 2023.

Invoice Finance 

If you are an Invoice Finance customer of Santander UK plc and the Discount Rate applied under your sales finance agreement with us is linked to the Bank of England base rate for your GBP facility, then the Discount Rate (and resulting Discount Charge) you are charged will increase by 0.25% from 3 August 2023.

Asset Finance

If you have a Variable Rate Hire Purchase or Variable Rate Finance Lease agreement with Santander and the interest rate is linked to the Bank of England base rate, then the interest rate will increase by 0.25%. This change will be effective from the 3 August 2023.

Commercial Mortgages 

If you have a variable rate Commercial Mortgage that is linked to the Bank of England base rate, and your facility agreement does not include a Minimum Lending Rate (MLR), then the interest rate will increase by 0.25%, in accordance with the terms of the agreement. This change will be effective from 3 August 2023.

If your Commercial Mortgage facility agreement does have a Minimum Lending Rate, your interest rate will increase if the Bank of England base rate plus the agreed Margin exceeds the Minimum Lending Rate.

GBP Overdrafts (including Commercial Notional Pooling & GBP accounts in Cross Currency Overdraft structures)

Arranged Overdrafts

Our Arranged Overdraft interest rate is linked to the Bank of England base rate, so will increase by 0.25%. This change will be effective from 1 September 2023.

For all products

Please note that the information provided is based on our standard Terms and Conditions. Your individual facility letter or agreement may differ and therefore we recommend that you refer to these documents and the Terms and Conditions which were issued with it. If you have any questions, please contact your relationship team.

CCB Banking and Deposit Products

Products linked to the Bank of England base rate

All savings and current accounts with interest rates linked to the Bank of England base rate will increase by 0.25% from 1 September 2023.