The new Bank of England base rate

The latest Bank of England base rate is: 1.25%.

This is an increase of 0.25%, and was announced by the Bank of England (BoE) on 16 June 2022.

From 1 August 2022 our tracker mortgage rates will increase in line with the base rate. We're currently working out what the base rate change on the 16 June means for our members on the Standard Mortgage Rate (SMR) and Base Mortgage Rate (BMR).

Following the base rate change on the 5 May we’ve reviewed our rates and from 1 July 2022:

  • Standard Mortgage Rate (SMR) will increase from 4.24% to 4.49%
  • Base Mortgage Rate (BMR) will increase from 2.75% to 3.00%

Not sure which type of rate you’re on?

Check your annual statement or mortgage offer, whichever is the most recent. This will tell you which mortgage you have and the type of interest rate you’re on.


Fixed rate mortgages

No change to your interest rate

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.

Near the end of your deal period?

If your deal period is ending in 5 months or less, you can switch to a new mortgage deal.

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


Switching your mortgage deal

You can switch to a new mortgage deal if:

  • your fixed rate deal is ending in 5 months or less
  • you're on a tracker mortgage
  • you're on the Standard Mortgage Rate (SMR) or Base Mortgage Rate (BMR)

If there's more than 5 months left of your fixed rate deal, you can still switch, but you will have to pay an Early Repayment Charge (ERC) up front when you apply.

How to switch your mortgage deal


Tracker mortgages

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 increasing our tracker mortgage rates from 1 August 2022.

We'll write to let you know your new interest rate and monthly payments. You'll start paying your new monthly amount from August 2022, on your usual payment date.

Work out your new interest rate and payments

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

  • the new base rate of 1.25%, 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 mortgage payment change calculator.

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 they may have 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 has been low.

If the new 1.25% base rate is still below your tracker floor, your interest rate and monthly payments will stay the same. They won't change until the base rate rises back above your floor.

Check your mortgage offer to find out your floor. If you're unsure if this affects you, find out more about tracker floors.


Standard and Base Mortgage Rates (SMR and BMR)

We're currently working out what the base rate change on the 16 June means for our members on the Standard Mortgage Rate (SMR) and Base Mortgage Rate (BMR). We'll write to you if you are affected. The letter will explain your new interest rate and monthly payments. You can also keep checking our website for updates.

Find out how the base rate affects your mortgage

Following the base rate change on the 5 May we’ve reviewed our rates and your interest rate and monthly payments will change if you're on our Standard Mortgage Rate (SMR) or Base Mortgage Rate (BMR).

From 1 July 2022 our:

  • SMR will be 4.49%
  • BMR will be 3.00%

Your new monthly payments

We'll write to confirm what your new monthly payments will be. You’ll start paying the new amount from July 2022, on your usual payment date.

You can also get an idea of what you'll pay using our mortgage payment change calculator.

About SMR and BMR

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


How we adjust your payments

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

Repayment mortgages

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.

Interest only mortgages

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.

In arrears or on a payment plan

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.

Find out how to pay your mortgage arrears


Overpayments after a base rate change

Your monthly overpayment amount

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.

If your monthly mortgage payments are increasing because of the base rate change, we won't use your overpayments to pay the difference. So, you may want to tell us to reduce your overpayments so you can put the money towards your monthly mortgage payment instead.

Find out how to change your overpayments

Your mortgage term stays the same

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.

Find out how to change the length of your mortgage term


Recently applied and waiting to complete

Fixed rate mortgage

If you recently applied for a fixed rate mortgage that hasn't completed yet, don't worry. Your interest rate will be the same as when you applied.

Tracker mortgage

When your tracker mortgage completes, your interest rate will be higher 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 22 June 2022, all mortgage offer documents we send out will use the new rates.


Worried about paying

If you’re worried you’ll struggle with your finances when the base rate changes, we're here to help.

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



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