On Thursday 18 December 2025, the Bank of England announced a decrease in its base rate from 4% to 3.75%.
Bank of England base rate changes
What has changed
Tracker mortgages
From 1 January 2026, we'll be decreasing 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'll start paying their new monthly amount from January 2026, on the usual payment date.
Standard Mortgage Rate (SMR) and Base Mortgage Rate (BMR)
From 1 January 2026 we'll be decreasing our SMR and BMR 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 January 2026, on the usual payment date.
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.