Bank of England base rate FAQs

Read our FAQs about the Bank of England base rate change and how it may affect your client's mortgages.

My client is currently completing their new mortgage, will the announcement affect them? This will reveal additional content: If your client has chosen a tracker mortgage, their rate may change as a result. We’ll write to them to confirm their new rate before their first payment.
My client is on a fixed rate but their product is coming to an end this month, will they receive a letter? This will reveal additional content: Yes, we’ll write to them to confirm their new monthly payment five working days before the end of the month.
My client is on a managed rate, is their payment reducing? This will reveal additional content: As TMW’s managed rates are not linked to the Bank of England base rate, BTL managed rates will not reduce as result of this change. TMW’s Managed Rates continue to be competitively priced compared to the variable rates in the market and offer a high level of flexibility. In most cases you will also have the option to switch to a new mortgage deal.
My client is on a managed rate, are they eligible to switch to a new deal? This will reveal additional content: If your client is a TMW customer, please log into TMW Online to check if they are eligible for a new product or alternatively you can refer them to tmwdirect.co.uk/existing-customers/switch-to-a-new-deal.
How does the base rate change impact customers applying for new trackers? This will reveal additional content: All Mortgage illustrations and Offer documents will reflect the new Bank of England base rate from 15 April. For new customers completing on trackers from this date, the new base rate will be reflected upon completion.
How will you work out my client's new monthly payment amount? This will reveal additional content: We’ll use your client’s outstanding balance, along with their new interest rate to calculate their new monthly payment. The total amount they owe will be distributed over the months remaining until their mortgage end date.
My client's payment has changed, but can they continue to make overpayments? This will reveal additional content: Yes, if they’ve extra money available, it could be worthwhile paying as much as they can afford each month.

If they have a mortgage which is subject to an Early Repayment Charge, this will apply if they make overpayments that exceed their overpayment allowance. So please refer them to their annual mortgage statement or their original mortgage offer to check this.
My client's been making regular overpayments, why hasn’t the term of their mortgage changed? This will reveal additional content: Unless they specifically ask for their term to be changed, we’ll continue to calculate payments to repay the mortgage over the agreed term. Any overpayment they've made has reduced the balance of the mortgage and this has reduced the interest they're paying.
Why haven’t the rates on all my client's mortgage accounts changed? This will reveal additional content: If your client has more than one account, their rate on other accounts may not change because they may have a fixed rate on their account, which won’t change until the end of their product term or you are on one of our managed rates.
Will my client's monthly mortgage payment automatically change to the new amount? This will reveal additional content: If they are currently paying by Direct Debit then this will automatically be changed and they don't need to do anything. However, if they are paying by any other method, including Standing Order, they will need to change the amount they pay with their bank so that it covers the new monthly commitment.