Bank of England base rate changes


The Bank of England updated the base rate on Thursday 2 November. Click here for more information.

Once a Bank of England base rate change is announced, changes to our existing customer rates (where applicable) will come into effect on the first of the following month. If you have a mortgage with The Mortgage Works, Derbyshire Home Loans or E-Mex Home Funding we'll write to you to confirm your new rate and payment details if your current mortgage is affected.

Would a base rate change affect my monthly mortgage payments?

Variable rate mortgages
Maybe – All variable rates indexed to the base rate will change. Variable rates which aren't indexed to the base rate can change at any time and could potentially be influenced by a base rate change.

Tracker rate mortgages
Maybe – With a Bank of England base rate tracker rate mortgage, your interest rate is a fixed percentage above or below the Bank of England base rate. This means your payments will go up and down in line with the base rate as it is changed by the Bank of England. Your tracker may have a floor, this means your payment won't reduce if the base rate goes below a certain level.

Fixed rate mortgages
No – If you're on a fixed rate mortgage, your rate won’t change for the duration of the fixed rate period. If your fixed deal is coming to an end, you'll move on to a variable rate. We'll write to you to confirm your new monthly payment at least five working days before the end of the month.

What are my options?

If the base rate changes, you may wish to consider your current mortgage arrangements to ensure these remain appropriate for you. If you'd like advice on all the options available to you, we’d recommend you speak to your broker or visit Unbiased to find your local independent financial adviser.

Worried about your 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.