What has changed
On Thursday 3 August 2023, the Bank of England announced an increase in its base rate from 5% to 5.25%.
Tracker mortgages
From 1 September 2023, we'll be increasing our tracker mortgage interest rates to reflect the base rate change.
We'll write to your client to let them know what their new interest rate and monthly payments will be. They will start paying their new monthly amount from September 2023, on the usual payment date.
Base Mortgage Rate (BMR)
From 1 September 2023, we'll be increasing our BMR to 6.75%, to reflect the latest base rate change.
We'll write to your client to let them know what their new interest rate and monthly payments will be. They'll start paying their new monthly amount from September 2023, on the usual payment date.
Standard Mortgage Rate (SMR)
We’ve reviewed our SMR and have decided not to pass on the latest base rate change at this time.
We'll continue to review the position and will notify impacted customers if things change in the future.
Fixed rate mortgages
If your client is on a fixed rate mortgage, nothing will change.
The interest rate and monthly payments stay the same until the end of the fixed deal.