Bank of England increases base rate
Find out how mortgages and savings accounts are affected by the change to the base rate.
Published on: 16 June 2022
What has changed
On Thursday 16 June 2022, the Bank of England announced a 0.25% increase in its base rate from 1.00% to 1.25%.
We're currently working out what this means for our savings members.
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.
From 1 August 2022, we'll be increasing our tracker mortgage interest rates to reflect the base rate change.
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 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 latest mortgage offer
Once you have your interest rate, you can get an idea of your monthly payments using our mortgage payment 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)
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 confirm your new interest rate and monthly payments. You can also keep checking our website for updates.
Following the base rate change on the 5 May we’re reviewed our rates and from 1 July 2022:
- our Standard Mortgage Rate (SMR) will increase from 4.24% to 4.49%
- our Base Mortgage Rate (BMR) will increase from 2.75% to 3.00%
We'll write to you if you are affected. The letter will confirm your new interest rate and monthly payments. You'll start paying your new monthly amount from July 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 latest 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.