Changes to our Base and Standard Mortgage Rates
On Thursday 16 June 2022, the Bank of England announced an increase in its base rate from 1% to 1.25%.
In response to this change we've now reviewed both our Base Mortgage Rate (BMR) and Standard Mortgage Rate (SMR) and will be making the following changes effective 1 August 2022:
- Base Mortgage Rate (BMR) will be 3.25%
- Standard Mortgage Rate (SMR) will be 4.74%
We'll be writing to our BMR/SMR members in July confirming their new rate and mortgage payment amount.
Bank of England base rate change – 5 May
We previously confirmed that following the base rate change on 5 May we'll be making the following changes from 1 July 2022:
- Base Mortgage Rate (BMR) will be 3.00% (previously 2.75%)
- Standard Mortgage Rate (SMR) will be 4.49% (previously 4.24%)
We've already written to our BMR and SMR members this month confirming their new rate and mortgage payment amount.
Tracker mortgagesFrom 1 August 2022, 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'll start paying their new monthly amount from August 2022, on the usual payment date.
Which trackers are not affected
Some tracker mortgages reserved between 1 December 2004 and 16 February 2009 will not be affected by the rate increase because their tracker floor is higher than the base rate.
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.