Bank of England Bank Rate - Information for Principality Members
On 2 November 2017 the Bank of England announced that the Bank Rate would increase from 0.25% to 0.50%. We understand how important it is for our customers to be kept informed of changes to their interest rates, which is why you’ll find some useful information below.
What is the Bank of England Base Rate?
The Bank of England sets an interest rate ('Bank Rate', also known as 'Base Rate') at which it lends to financial institutions. This interest rate then affects the range of interest rates that are set by banks, building societies and other institutions for their own savers and borrowers.
What happens to my mortgage payments, if the Bank of England Bank Rate goes up?
If you are on a Fixed Rate Mortgage you will not be impacted during your special term. If you have a Discounted Rate Mortgage or a mortgage where the interest rate is our Standard Variable Rate (SVR), you will not be directly impacted by a change in the Bank of England Bank Rate; however we may review and alter our SVR as a result of this change .
If you are on a Tracker Rate Mortgage, your interest rate is variable and it 'tracks', or is linked to, the Bank of England Bank Rate until the end of the special rate. This means that any changes to the Bank of England Bank Rate will have an effect on your rate, and subsequently on your monthly payments which could go up. At the end of your special term your mortgage interest rate will then change to our SVR, providing you haven't switched to another mortgage product.
How do I know what type of mortgage I have?
You should find this information on your last mortgage statement from us. Alternatively, please visit one of our branches, call Connect on 0330 333 4000 (lines are open Monday to Friday 8am to 8pm and Saturday 9am to 1pm), or register for Your Account.
How will I know if my mortgage account interest rate is changing?
If your mortgage account interest rate is changing and it impacts your monthly repayment, we will write to you, 10 working days before the change takes effect. You can also register for Your Account, to keep track of your interest rate, not just for mortgages but savings too.
How will I know if my savings account interest rate is changing?
If we are going to increase the interest rate on your savings account, this will only be for variable interest rate accounts. You’ll find information on this, at your local branch, via our website, or through the newspapers within 3 working days of the change. You can also register for Your Account, to keep track of your interest rates, not just for savings but mortgages too.
Where can I get more information about my mortgage or savings account?
If you would like further information on your mortgage or savings account please visit one of our branches or call Connect on 0330 333 4000. Lines are open Monday to Friday 8am to 8pm and Saturday 9am to 1pm.
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