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Bank of England Base Rate and your mortgage
The current Bank of England (BoE) Base Rate is 4.5%. Use our calculator to see how changes to the Base Rate could impact your mortgage repayments.
Interest rate change calculator
Interest rate change calculator
If you have variable interest rate, you can use our rate change calculator to get an idea of how much your monthly mortgage payment could change.
You'll need:
- to get your remaining mortgage balance and term from your most recent mortgage statement.
- to know the interest rate you'll be moving to.
Your current mortgage balance
You can find your mortgage balance in your most recent annual mortgage statement.
You'll need to take into account any payments made on your mortgage since the date of the statement. If you've fallen behind with your payments on any part of your mortgage that is a repayment mortgage, you'll need to take off the amount of arrears from the current balance.
Important: If you have a mortgage made up of part repayment and part interest only, you'll need to do a separate calculation for each.
Remaining term
The length of time you have left to pay back your mortgage.
You can find your remaining term details in your most recent annual mortgage statement.
Important: Please check the remaining term on your main account and each sub account.
Your current mortgage interest rate
This is the interest rate for your sub account on the date shown.
You can find your interest rate details in your most recent annual mortgage statement.
Important: Please check the interest rate on your main account and each sub account.
Interest rate change
Use the + or - buttons to add and deduct amounts of 0.25%. Or just type in the rate change percentage you'd like to see illustrated.
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Fixed interest rate |
Variable interest rate - Lender variable rate |
Variable interest rate - Tracker rate |
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|---|---|---|---|
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Fixed interest rate Your interest rate stays the same for a set amount of time. At the end of the fixed rate period, we’ll change you to another rate. This is usually one of our variable rates. |
Variable interest rate - Lender variable rate We set our lender variable rate, and we can change it, but it will only go up if there’s a:
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Variable interest rate - Tracker rate Your interest rate is linked to the Bank of England base rate and changes if the base rate does. Your interest rate will be made up of the base rate plus or minus a percentage. |
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Fixed interest rate No, not during the fixed rate period. |
Variable interest rate - Lender variable rate Yes, your interest rate will go up or down if we change our lender variable rate. |
Variable interest rate - Tracker rate Yes, your interest rate will change if the base rate goes up or down. |
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Fixed interest rate We may update your monthly payment amount each year to make sure your payment is on track. For example, if you’ve made an overpayment. |
Variable interest rate - Lender variable rate Yes, your monthly payment can change if rates go up or down. If they go up, you could end up paying more than you budgeted for. |
Variable interest rate - Tracker rate Yes, your monthly payment can change if rates go up or down. If they go up, you could end up paying more than you budgeted for. |
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Fixed interest rate You may be charged if you repay all or part of your mortgage before the fixed rate period ends. We call this an early repayment charge. |
Variable interest rate - Lender variable rate You won’t usually be charged if you repay all or part of your mortgage. |
Variable interest rate - Tracker rate You may be charged if you repay all or part of your mortgage in a certain amount of time after you take out a new tracker. We call this an early repayment charge. |
We’ll let you know before making changes to your interest rate or monthly payments
What are my next steps?
If your mortgage rate and monthly repayments are changing, then there are a few things you can do.
Worried about paying your mortgage?
Don’t wait until you’re about to miss a payment before getting in touch. The sooner you talk to us, the more options you’ll have. We have tools and guides to support you, and talking to us won’t affect your credit rating.
Worried about paying your mortgage?
Don’t wait until you’re about to miss a payment before getting in touch. The sooner you talk to us, the more options you’ll have. We have tools and guides to support you, and talking to us won’t affect your credit rating.
Frequently asked questions
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Where your mortgage is made up of sub-accounts, we look at each sub-account separately and change the monthly payment only on sub-accounts affected by the change. This may mean that some and not all sub-accounts get a monthly payment recalculation.
Mortgages on daily interest
- For repayment sub accounts, we work out what you owe on the day we recalculate your monthly payment. We add this to the amount of interest we expect will be charged to the end of that month. Then we take off the amount of any arrears that you owe, which you will need to pay separately.
- For interest only sub accounts, we work out what you owe on the day we recalculate your monthly payment. We add this to the amount of interest we expect will be charged to the end of that month.
- We work out how many months remain to the end of the mortgage term starting from the following month and then work out what your new payment should be.
- However, if we receive your monthly payment after we recalculate, it will mean the recalculated payment amount will be higher than it needs to be. If this happens and you would like us to recalculate your monthly payment, you can contact us.
Some customers with older mortgages have interest calculated on a monthly or annual basis. We recalculate the payments on these mortgages differently. If you think you are on monthly or annual interest and would like more information, or you would like to switch to daily interest, please contact us.
For interest-only mortgages, you pay only interest during the term of your mortgage and pay a lump sum at the end of the term to pay off everything else you owe. To calculate your monthly payment, we take the amount you owe on the day we do the recalculation together with how much we think interest will be to the end of that month. We then calculate a monthly payment at a level that pays the interest-only on this amount taking into account any interest rate change.
Where part of your mortgage is repayment and part interest only, each method will apply to the part concerned.
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If you’ve made overpayments since the last time we recalculated your monthly payment, they'll be included the next time your monthly payment is recalculated. This means your balance will have been reduced by the overpayment amount and your new monthly payment could be lower even though the interest rate is going up.
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If your mortgage is on a fixed rate of interest, then the interest rate on the part that is fixed won’t change. When the fixed rate comes to an end, we'll calculate a new monthly payment at the new variable interest rate that applies at that time.
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Any additional borrowing you have arranged on a fixed rate of interest won't change as a result of a change to our variable mortgage rates.
If you have arranged additional borrowing at a variable rate any offer will show the interest rates that applied at the time the offer was made. If we change the variable rate after the offer is issued, we won’t write to you until you complete. When you complete, the letter will have a new monthly payment and interest rates that will apply.
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Any product switch you have arranged will be on a fixed rate of interest and this won't change as a result of a change to our variable mortgage rates. However, there may be part of your existing mortgage being charged at a variable rate. We'll recalculate the monthly payment on any parts of the mortgage being charged interest at a variable rate and add these to the monthly payments on any fixed rate parts to give you a total new monthly payment.
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As Tracker rates are linked to the Bank of England base rate then your rate will change if the base rate does. We'll contact you to tell you what your new monthly payment will be.
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If you have arranged to switch to a new deal and the new rate hasn’t yet taken effect, you can contact us and tell us that you have changed your mind. If the new rate already applies, you can still change your mind. But only as long as you tell us within 28 days of the new rate taking effect.