What is the Bank of England base rate?

The base rate is the official interest rate set by the Bank of England's Monetary Policy Committee (MPC). Banks and Building Societies use this base rate to calculate interest rates for some of their mortgages and savings offerings. To find out more about how monetary policy works, you’ll find some helpful information at bankofengland.co.uk/monetarypolicy.

Why would the base rate change?

The decision to raise or lower the rate is made on a monthly basis by the BoE's Monetary Policy Committee (MPC).

Their decision is determined by the state of the UK economy and how they seek to influence overall borrowing in the economy. Aspects such as inflation, employment figures and consumer confidence could influence the decision to raise or lower the rate.

Once a BoE base rate change is announced, changes to our existing customer rates (where applicable) will come into effect on the 1st of the following month. If you're a Nationwide mortgage customer, we'll write to you to confirm your new rate and payment details if your current mortgage is affected.

Why not try our Rate       Change Calculator?

Calculate how a base rate change may affect your monthly mortgage payments.

Will it affect my monthly mortgage repayments?

Variable rate mortgages

Maybe – The Nationwide Base Mortgage Rate (BMR) and Standard Mortgage Rate (SMR) are both variable rates which could potentially be influenced by the BoE base rate change. Find out more about the Nationwide BMR and SMR.

Tracker rate mortgages

Maybe – With a tracker rate mortgage, your interest rate is a fixed percentage above the BoE base rate. This means your payments will go up and down in line with base rate as it is changed by the BoE. Your tracker may have a floor, this means your payment won't reduce if the BoE base rate goes below a certain level. Find out more about your tracker floor.

Fixed rate mortgages

No – If you're on a fixed rate mortgage, your rate will not change. If your fixed deal is coming to an end, you'll move on to the Nationwide BMR/SMR. At Nationwide, we'll write to you to confirm your new monthly payment 5 working days before the end of the month.

To find out your rate, check your Annual Mortgage Statement or log in to Internet Banking

What are my options?

Stay on your current mortgage rate

If you're currently on a fixed rate mortgage, a base rate change won't affect your monthly mortgage payments, so you may wish to stay on your current mortgage deal.

Switch to a fixed rate mortgage

If the base rate changes, you can remain on your variable or tracker rate, or you can switch your deal. You can switch to a fixed rate at any time to benefit from the stability of fixed monthly payments.

Guide to switching

Visit our handy guide to switching.

Why switch your mortgage?

Worried about your payments?

If your monthly payments will be affected by a base rate change, you can use our handy budget calculator to work out whether you can afford to keep up with your potential new monthly payments. If you feel you could face financial troubles if the base rate were to change, we're here to help you. To find out how we can help with any financial difficulties you may have, visit our money worries section.

To work how much your monthly payments could be, try our Rate Change Calculator

Find out more

Contact us

Visit us in branch

If you need to speak to a member of staff, pop into any branch. Use our branch finder to find your nearest location.

Contact us

Give us a call

If you can't find what you need on this page or in the FAQs, call us on 0800 30 20 11 and we'll be happy to help.