YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
The Bank of England Base Rate has been consistently low for a number of years. But if it changes, this’ll have an impact on your mortgage payments if you have a mortgage linked to this rate.
The Bank of England Base Rate is 0.25%.
The Base Rate is the official interest rate set by the Bank of England. When the Bank of England decides to change the official interest rate, this can have an effect on your mortgage payments.
The impact of any change will depend on the type of mortgage you have, the amount you’ve borrowed and how long you’ve taken it out for. If any part of your mortgage is on one of our variable rates and your rate changes following a change to the Bank of England Base Rate, your payment may go up or down. If this happens, we’ll write to you confirming your new payment (unless you’re on the Annual Instalment Review scheme - find out more below).If you’re worried about how a change in interest rate might affect you, the first thing to do is check what type of mortgage you’re on:
If you’re concerned about the impact of significant interest rates changes in the future, please contact one of our qualified Mortgage Advisors who’ll be able to discuss your options. Please call 0800 056 1088. Lines are open from 8am – 8pm Monday to Friday and 9am – 4pm on Saturdays.
The table below may help you to understand how an increase in interest rates could affect your monthly payments. The numbers are for illustrative purposes only.
If you pay your mortgage by standing order, you’ll need to contact your bank to amend the amount from the date shown on your rate change letter. Unfortunately this can’t be done by us on your behalf, so you may find it easier to pay by Direct Debit instead.
If you pay your mortgage by Direct Debit there’s no need to take any action. The new amount will be collected as usual.
If you pay your mortgage by cash or cheque, simply adjust the amount(s) that you send to us each month.
If you’re on an agreed Instalment Break or Payment Break, the new interest rate will be applied to your account from the date shown on your rate change letter. Once your break comes to an end, the revised payment amounts will apply.
If your payments have increased and you feel that
you’re unable to meet them, please contact our team on
0345 835 3374, where full support will be available.
We are mailing our mortgage customers to tell them how the Bank of England base rate change affects their monthly payments. Please read our frequently asked questions.
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