The official base rate is set by the Bank of England and affects the interest rates offered by Banks, Building Societies and other financial institutions. Through changing the rate, the Bank of England seeks to meet the target set by the Government to keep inflation low and stable, as well as influencing overall borrowing in the economy.
The Bank of England base rate can go up or down and is announced at the Monetary Policy Committee (MPC).
Changes to the base rate could affect interest rates or payments on any savings or mortgages you hold with us.
On the 11th March 2020 The Bank of England base rate decreased from 0.75% to 0.25%.
On 19th March 2020, the Bank of England decreased the base rate from 0.25% to 0.10%.
We are currently reviewing our savings interest rates and we will communicate any changes in due course once a decision has been made.
Here you’ll find the interest rates for all our current products, including Britannia products.
Here you'll find the interest rates for all our savings products no longer available, including Britannia products.
If you currently hold a Co-operative Bank or Britannia mortgage and it is affected by a change in the base rate, we will always write to you to inform you of any changes to your interest rate and monthly payments ahead of your next monthly payment due date.
If you hold a tracker mortgages with us, the interest rate will track the Bank of England base rate. This means it will rise and fall whenever the base rate does.
Any changes will always be in accordance with your terms and conditions or offer letter, so if your product has a floored rate your mortgage interest letter will not fall below the rate stated in your terms and conditions.
If you hold a Standard Variable Rate Mortgage with us, it is possible that your interest rate will change if the base rate changes, but this is not guaranteed as they are not directly linked.
For our Mortgage customers who took out Tracker rates before 16 March 2020, your overall mortgage interest rate will decrease by 0.50% effective from 1 April 2020.
The latest change to our Standard Variable Rate for mortgages will be a decrease from 4.99% to 4.49% effective from 1 April 2020 in accordance with the Bank of England base rate change.
Following the change in the Bank of England base rate, we are currently reviewing our Mortgage Standard Variable rate (currently 4.99%) and we will communicate any changes in due course once a decision has been made.
With our Fixed Rate Mortgages, the interest rate does not change and your monthly payments are guaranteed to remain the same until the end of your fixed rate interest period. The Bank of England base rate has no effect on this, regardless of whether it changes.
When your fixed rate ends, we will contact you to inform you of your new interest rate and monthly payments.
The Variable Rate Savings Accounts we offer, like our Online Saver, offer interest rates that typically follow the Bank of England base rate.
This means your interest rate is not guaranteed to stay the same, and is likely to change if the base rate changes.
Following the change in the Bank of England base rate on 19th March 2020, we are currently reviewing our savings interest rates and will communicate any changes in due course once a decision has been made.
If you hold a Fixed Rate Savings Account with us, such as the Britannia Fixed Rate Cash ISA, your interest rate will remain the same throughout the term of the product.
The Bank of England base rate has no effect on fixed rate products, regardless of whether the base rate changes.
Visit our Help & Information pages to find out more about the Base Rate Change and how this affects our customers.