On Thursday 19 March 2020, the Bank of England changed the base rate.

Who's affected?

Following the announcement by the Bank of England to decrease the base rate by 0.15%, we’ll be making the following changes to our mortgage rates:

Our Standard Mortgage Rate (SMR) will decrease to 3.59% (previously 3.74%).

Our Base Rate Mortgages (BMR) for mortgages reserved:

  • through Nationwide on or before 29 April 2009
  • through Derbyshire on or before 30 May 2009, or
  • through Cheshire on or before the 14 June 2009

...will decrease to 2.10% (previously 2.25%).

Most tracker mortgage rates will decrease in line with our members’ mortgage offers (however some accounts have already reached the minimum interest rate in their offer will not see a decrease).

  • The changes to tracker rate mortgages and Base Mortgage Rate (BMR) will apply from 15 April 2020 and payments will change from 1 May 2020. We’ll write to affected members, letting you know your new rate and payment amount, in April.
  • The changes for Standard Mortgage Rate (SMR) will apply from 15 April 2020 and payments will change from 1 May 2020. We’ll write to affected members, letting you know your new rate and payment amount, in April.

Our Rate Change Calculator can help you work out how your payments may change.

If you've chosen a tracker or variable rate mortgage, your rate may change as a result. All Key Fact Illustration and offer documents for tracker mortgages will reflect the new rates from Wednesday 1 April 2020. We'll write to you within 10 days of your mortgage completing to confirm your new rate and payment amount.

If you have a fixed rate mortgage, your rate won’t change until the end of your product term. We’ll write to you when this happens to confirm the rate you’ll be moving on to and your options.

Yes – we’ll write to you to confirm your new monthly payment at least five working days before the end of the month.

Most trackers will decrease in line with your contract. However, there are a number of tracker rate mortgages, reserved between 1 December 2004 and 16 February 2009, where the base rate is below the minimum level set out in your offer (see table). This meant that the interest rate reached a minimum level and did not reduce in line with a previous base rate decrease. Your rate will not decrease past the level set out in your offer. You can check if there is a floor on your tracker rate mortgage in your mortgage offer.

Date your tracker was reserved Tracker floor Will I see my rate decrease?
Before December 2004 No floor Yes
Between 1 December 2004 and 30 November 2008 2.75% on original offer, currently 2% as a temporary concession until further notice No
Between 1 December 2008 and 16 February 2009 1% No
Between 17 February 2009 and 11 June 2009 0.01% Yes
12 June 2009 onwards 0.00% Yes

About making 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.

If you can afford to, continuing to make your overpayments could be worthwhile. However if you want to decrease the amount that you're overpaying by or want to stop making overpayments completely you can, depending on how you're making your payment. Please note that payments received toward your mortgage will cover your contractual monthly payment before any excess is added to your overpayment reserve.

  • If you're paying by Direct Debit you can either contact us on 0800 30 20 11, visit us in branch, send us a secure message through the Internet Bank or write to us with your instructions.
  • If you're overpaying by Standing Order from a Nationwide account you can change the amount in your Internet Bank or by contacting us.
  • If you're paying by Standing Order from another bank or building society you'll need to contact them and ask them to change the amount.

To make a one off lump sum payment you can:

  • Use online banking to make multiple single payments (limit of £10,000), providing you have sufficient cleared funds available. You can also call us on 0800 30 20 11 to make an overpayment of any amount.
  • If you're paying from another bank or building society account you can pay online with a CHAPS payment or by using multiple quick/single payments, providing you have sufficient cleared funds available. They'll need our Sort code (070094), our account number (44444445) and your mortgage account number as a reference (you can find this on your annual statement or online using the Internet Bank).
  • Whether you choose to pay off a lump sum or pay off a bit each month, your new balance shows immediately and the revised interest is charged the next day. Overpayments may be subject to Early Repayment Charges, you can check your mortgage offer for details.

I've received my letter and I need help

If you have a repayment mortgage: Your payment is based on your outstanding loan amount, term and interest rate to make sure you’ll have paid off your balance at the end of your mortgage.

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

If you're in arrears: Your monthly payment doesn’t include repayment of any outstanding arrears and you’ll need to make arrangements to pay these separately if you haven’t already done so.

If you have an agreement to pay a different amount: If you're currently paying a different amount to your contractual monthly payment this will continue. Please check the letter we send you with your payment details carefully for more information. 

Depending on how you pay your mortgage, you may need to amend your payments (please refer to earlier FAQs).

Unless you specifically ask for your term to be changed, we'll continue to calculate payments to repay the mortgage over the agreed term. Any overpayment you've made has reduced the balance of the mortgage and this has reduced the interest you're paying.

More information on overpayments can be found on our support page. If you'd like to find out about the possibility of reducing your term, please give us a call on 0800 30 2011 (8am to 8pm Monday to Friday and 9am to 5pm Saturday) and we'll be happy to help.

Yes, if you can afford to, it could be worthwhile. If you have a mortgage where an Early Repayment Charge applies, this charge will also apply if you make an overpayment of more than the overpayment allowance. So please refer to your annual mortgage statement or your original mortgage Offer to check your allowance.

For more information, please see our overpayments overview.

If you have more than one account, your rate on other accounts may not change because you have a fixed rate on your account, which won't change until the end of your product term.

The four most common reasons for this are:

  • You’ve had a period of underpayment, this is where you’ve either:
    1. Used your overpayment reserve by arranging to underpay for a period of time or
    2. We’ve agreed to you paying less than your normal payment for a period of time due to a change in your circumstances.
    If you have a capital repayment mortgage, by underpaying, your balance won’t have reduced as quickly as it would have if you’d continued to pay your full monthly payment.
  • A fee(s) has been added to your account. Some reasons you may have been charged a fee are:
    You've missed a payment(s) or you’ve asked us to make a change to your account. If this happens we’ll write to you at the time the fee is added and it will show in your annual mortgage statement. In this scenario, your monthly payment may need to increase to pay all interest due and repay any part of your mortgage statement on a capital and repayment basis by the end of the term.
  • You’ve borrowed more money or had a retention or stage payment released.
    This means your mortgage balance has increased during the same month as the rate change. Therefore the new rate has been calculated against a higher balance.
  • The balance on your interest only mortgage has exceeded the value of your original advance.
    Please see ‘Important information for customers that have an Interest Only mortgage’.

In the event of a future rate change, we will communicate what this means at that time.

We will be sending out letters in April to members affected by the change in the base rate. Changes to tracker rates, Base Mortgage Rate (BMR) or Standard Mortgage Rate (SMR) will apply from 15 April 2020 and payments will change from 1 May 2020. This is to make sure all members affected have received a letter before their payment amount is changed.

Think carefully before securing other debts against your home. Your mortgage is secured on your home, which you could lose if you do not keep up your mortgage repayments.