Bank of England increases base rate

What has changed

On Thursday 3 February 2022, the Bank of England announced an increase in its base rate from 0.25% to 0.5%.

Tracker mortgages

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

We'll write to your client to let them know what their new interest rate and monthly payments will be. They will start paying their new monthly amount from March 2022, on the usual payment date.

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.

Standard Mortgage Rate (SMR)

Members who are on the SMR will see an increase to their rate to 3.99% (previously 3.74%) from 1 March 2022.

Base Mortgage Rate (BMR)

The BMR (for mortgages reserved through Nationwide Building Society on or before 29 April 2009, through Derbyshire Building Society on or before 30 May 2009 or through Cheshire Building Society on or before 14 June 2009) will increase to 2.50% (previously 2.25%) from 1 March 2022.

We’ll write to affected Tracker, SMR and BMR customers from 14 February confirming their new rate and mortgage payment amount.

Fixed rate mortgages

If your client is on a fixed rate mortgage, nothing will change.

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