The Bank of England base rate is the official interest rate set by the Bank of England’s Monetary Policy Committee. Banks and building societies use the base rate to calculate interest rates for some mortgages.
The Bank of England base rate last changed on 7 November 2024. It’s currently 4.75%.
About our different types of mortgage
| Follow-on Rate (FoR) | FoR is currently 8.00% (Bank of England base rate plus 3.25%). If you applied for a mortgage deal between 23 January 2018 and 20 November 2023, it transfers to the FoR when the product period ends. For example, you applied for a 2 year fixed rate in April 2023. Your mortgage will transfer to the FoR when the fixed rate ends in 2025. It’s a variable rate that tracks the Bank of England base rate. So, it will always move in line with changes to the base rate. This means the rate and your monthly payment will go up or down as the base rate changes.
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| Standard Variable Rate (SVR) | SVR is currently 7.00%. If you applied for a mortgage deal before 23 January 2018 or from 21 November 2023, it transfers to the SVR when the product period ends. It’s a variable rate that we can change. This means the rate and your monthly payment could go up or down. It doesn’t track the Bank of England base rate, but it may change if the base rate changes. Our mortgage terms and conditions explain what other factors can also influence when we change this rate. We sent you copy of these with your latest mortgage offer.
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| Tracker rate mortgage | The interest rate tracks the Bank of England base rate for a set period of time. Your monthly payment will go up or down in line with changes to the base rate. So, you need to be sure you could afford it if your interest rate goes up. Lifetime Tracker and Flexible Offset mortgages are guaranteed to track the base rate for the life of the mortgage. |
| Fixed rate mortgage | The interest rate stays the same for a number of years, such as 2, 5 or longer. Your monthly payment doesn't change, so you know what you need to pay each month. If the Bank of England base rate goes up during the fixed rate period, it doesn't affect your monthly payment. If the base rate goes down though, you won't benefit from a lower monthly payment. |
If you don't know what your deal is, or when it ends, log on to your mortgage account in our mobile banking app or Online Banking. Or check your annual mortgage statement.
I'm worried about how a change in interest rates will affect me. What can I do?
Use our mortgage calculator to work out how a change to the Bank of England base rate could affect your monthly payments.
Fill in our budget calculator to get a clearer picture of how much you spend each month. You can then think about where you can make changes if you need to.
Coming to the end of your fixed rate deal, are on our Standard Variable Rate or a deal with no early repayment charge? Change your deal online or by phone.
If you're still worried and want help, go to money worries.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.