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FAQ / Mortgage questions
Interest rate changes

What is the Bank of England base rate?

It is the rate of at which the Bank of England charges us to borrow money, this rate is reviewed on a monthly basis by their Monetary Policy Committee and they may change the rate based on a number of economic factors.

If you would like to know more about the base rate you can visit the Bank of England website www.bankofengland.co.uk

Why are interest rates increasing?

The Bank of England has increased the base rate. As you may be aware some of our interest rates are linked to this, which means we may need to change our interest rates too.

Whether you're impacted or not will depend on your account type and we'll be in touch to let you know.

We'll put everything in writing and clearly explain any changes and when they will begin.

When will the increase take place?

A personalised letter will be sent to you detailing when this will take place and how you will be affected.

How will this affect me?

A letter detailing your new rate of interest and new monthly payment will be sent to you via post.

What do I need to do?

If you pay by standing order or bank transfer please make sure your payment is updated in time to reflect your new payment amount, as detailed in the letter we sent you.

If you pay by Direct Debit or post-dated debit card, there's nothing you need to do. We will amend your payment amount automatically, unless you tell us otherwise.

If you have any questions or are unsure whether you need to make any amendments to your payment method, please contact us on 0345 322 7007.

I am currently on an agreed temporary reduced interest rate; will this increase?

No. Interest rate increases will not apply to a temporary interest rate, only to contractual rates.

If this applicable to you, a personalised letter will be sent to you detailing what this will mean for your temporary agreed interest rate in addition to your pending return interest rate after your current forbearance period expires.

I am on a fixed rate. Will I be affected?

No. Your interest rate stays the same for the previously agreed amount of time (please check your Terms and Conditions if you are not sure what this is). Therefore, a change in the Bank of England base rate does not affect your loan rate or payments during the fixed period.

Your Terms and Conditions detail what happens at the end of your fixed rate period, including where you can get further information about your options.

What if I have further questions?

If you cannot find the answers to all your questions here, you can call us on 0345 322 7007 and we'll be happy to help.

Paragon Bank PLC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered in England number 05390593. Registered office 51 Homer Road, Solihull, West Midlands B91 3QJ. Paragon Bank PLC is registered on the Financial Services Register under the firm reference number 604551