Bank of England base rate changes and your mortgage

The latest Bank of England base rate is: 4.75%.

This is a decrease of 0.25%, and was announced by the Bank of England (BoE) on Thursday 7 November 2024.

From 1 December 2024:

• Our Standard Mortgage Rate (SMR) will decrease from 7.74% to 7.49%.
• Tracker mortgage rates will decrease in line with the base rate.
• Our Base Mortgage Rate (BMR) will remain unchanged and stay at 6.75%.

You can find the type of mortgage you're on and your interest rate by using our online Mortgage Manager.

You can also find this information on your annual statement or mortgage offer (whichever is the most recent).

In Mortgage Manager you can also:

If you've recently switched to a new fixed rate deal but it hasn't started yet, don't worry. The rate you accepted is locked in and that is the rate you will be on when your mortgage starts.

If you’ve switched to a tracker mortgage, your interest rate will change on 1 December 2024 in line with the base rate.

The interest rate we've quoted on your offer letter or email is locked in for 6 months, unless your own circumstances change (for example, your income).

If you accept that offer within the 6 months, you'll be on that rate when your mortgage starts.

When your tracker mortgage completes, your interest rate will be different than when you applied. It will have changed in line with the base rate.

We'll write to you within 10 days of your mortgage completing to confirm your new interest rate and monthly payment.

From 1 December 2024 our Standard Mortgage Rate (SMR) will decrease from 7.74% to 7.49%.

We'll write to confirm what your new monthly payments will be. You’ll start paying the new amount from December 2024, on your usual payment date. You can also get an idea of what you'll pay using our mortgage payment change calculator.

Our Base Mortgage Rate (BMR) will remain unchanged and stay at 6.75%.

If you're not sure whether you're on the SMR or BMR, you can find out more about standard and base rates.

Nothing will change if you're on a fixed rate mortgage. Your interest rate and monthly payments are fixed until the end of your deal period.

If you're coming to the end of your current deal, you can switch to a new one.

If you don't switch and your deal ends, you'll automatically go on to the Standard Mortgage Rate (SMR) or Base Mortgage Rate (BMR). We’ll write to let you know your new monthly payments at least 5 working days before this happens.

There are two ways to switch your Nationwide mortgage deal.

• You can book a free appointment to speak to one of our mortgage advisers. They’ll talk through your options and recommend the right deal for you.
• Or you might be able to switch online using our Mortgage Manager. In Mortgage Manager, you can pick your own deal and when you'd like it to start.

You might not be able to switch online depending on the type of mortgage or deal you're on, how long it has left, and if there's an Early Repayment Charge to pay.

No. To be fair to all our members, we'll always offer the same rates whether you speak to us on the phone or apply online.

Tracker mortgages are designed so that your interest rate goes up and down in line with the Bank of England base rate.

This means we’ll be decreasing our tracker mortgage rates from 1 December 2024.

We'll write to let you know your new interest rate and monthly payments. You'll start paying your new monthly amount from December 2024, on your usual payment date.

You can work out your new interest rate yourself by adding together:

• the new base rate of 4.75%, and
• the set rate you agreed to in your mortgage offer

Once you have your interest rate, you can get an idea of your monthly payments using our calculator.

Previously some tracker mortgages reserved between 1 March 2004 and 16 March 2009 may not have been affected by the rate increase because they had a higher tracker floor.

A tracker floor is an agreed level, 1% for example, that your interest rate will never go below even if the base rate does. Your interest rate may have been at your floor for a while because the base rate had been low.

When the base rate was below your tracker floor, your interest rate and monthly payments stayed the same. They wouldn't change until the base rate rose above your floor.

Check your mortgage offer to find out your floor. For more information, find out more about tracker floors.

If your mortgage is affected, we'll write to you with your new monthly payment amount.

Your new payment is based on your outstanding loan amount, term and the new interest rate. This is to make sure you’ll have paid off your balance by the end of your mortgage.

Your monthly payment will be based on your new interest rate and outstanding balance. Your payments will only pay the interest due and won’t reduce the amount you owe.

When we adjust your monthly payments, we won't include the repayment of any outstanding arrears. You’ll need to pay these separately if you haven’t already.

If you're already on an agreed payment plan to pay off your arrears, this will stay the same. The agreed monthly amount won't be affected by the base rate change.

Overpayments are not affected by the base rate because they're a separate amount you set yourself.

When you make a regular monthly overpayment, it's just an extra amount on top of whatever your contractual monthly mortgage payment is at the time.

Make overpayments, change or cancel your regular overpayments, or manage your preferences by logging in to Mortgage Manager.

When we adjust your monthly mortgage payments after a rate change, we work them out using your agreed mortgage term. Even though overpaying means you could be clearing your mortgage balance quicker, we don't automatically change the length of your mortgage term. We'll only change your term if you tell us to.

You can make or set up regular overpayments by logging in to Mortgage Manager. You can also access Mortgage Manager through our Banking app.

Bear in mind: some mortgages have limits on how much you can overpay. If you go over this limit, you might have to pay an Early Repayment Charge (ERC). You can check this on your mortgage offer or latest annual statement.

If you’re worried you’ll struggle with your finances, we're here to help.

To find out what our dedicated teams can do to support you, visit our money worries section.