What is the Bank of England base rate?
It is the rate 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 reducing?
As you may be aware, the Bank of England base rate has been reduced.
As a number of other interest rates are linked to this rate, we have made the decision to pass on that reduction in the products we offer our customers.
When will the decrease take place?
A 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 will send 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 decrease?
Yes. Interest rate reductions will apply to a temporary interest rate as well as the contractual one.
If this applicable to you, a letter will be sent to you explaining 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.