What has changed
On Thursday 5 May 2022, the Bank of England announced an increase in its base rate from 0.75% to 1%.
Variable rate mortgages
We’ll be increasing variable rate mortgages indexed to the base rate by 0.25% from 1 June 2022, in line with existing terms and conditions. We’ll be writing to customers from 19 May 2022 confirming their new rate and mortgage payment amount.
We’ll also be increasing the Managed Rates by up to 0.25%. For new and submitted applications, the new rates will take effect for KFI’s, Offers and Completions from 11 June 2022.
Existing mortgage customers will see new rates take effect from 1 July 2022, and we'll be writing to them from 17 June 2022 to confirm their new rate and mortgage payment amount.
Fixed rate mortgages
If your client is on a fixed rate mortgage, nothing will change.
The interest rate and monthly payments stay the same until the end of the fixed deal.