Published on: 16 December 2021


What has changed

On Thursday 16 December 2021, the Bank of England announced a 0.15% increase in its base rate from 0.10% to 0.25%.

We're currently working out what this means for our members. It may have an effect on some of our mortgages and savings accounts.


Fixed rate mortgages

If you're on a fixed rate mortgage, nothing will change – you don't need to do anything.

Your interest rate and monthly payments stay the same until the end of your fixed deal.

If you're near the end of your fixed deal period, you may want to switch your mortgage deal.

Questions? Try our guide to the base rate and our mortgages.


Tracker mortgages

From 1 February 2022, we'll be increasing our tracker mortgage interest rates to reflect the base rate change.

In January, we'll write to let you know what your new interest rate and monthly payments will be. You'll start paying your new monthly amount from February 2022, on your usual payment date.

You can find more detailed info in our guide to base rate changes and your mortgage.

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 0.25%, 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 their tracker floor is higher than the base rate. If you're unsure if this affects you, find out more about tracker floors.


Standard and Base Mortgage Rates (SMR and BMR)

From 1 February 2022:

  • our Standard Mortgage Rate (SMR) will increase from 3.59% to 3.74%
  • our Base Mortgage Rate (BMR) will increase from 2.10% to 2.25%

We'll write to you if you are affected. The letter will explain your new interest rate and monthly payments. You'll start paying your new monthly amount from February 2022, on your usual payment date.

Find out more about how the base rate change affects our mortgages.


Not sure which mortgage you have?

You can find out your mortgage type by checking your annual statement or mortgage offer, whichever is the most recent.


Savings and ISA changes

We're working through what the base rate change means for our savings members. When we have more information we'll add it to this page.