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%.
For our Savings customers, interest rates on some of our savings accounts will decrease with effect from 24 June 2020. Find more details below.
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 mortgage 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.
For our mortgage customers on Tracker rates, your overall mortgage interest rate decreased by 0.50% effective from 1 April 2020 and decreased by a further 0.15% effective from 1 May 2020.
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.
In accordance with the Bank of England base rate changes made 11 March 2020 and 19 March 2020, the rate decreased from 4.99% to 4.49% effective from 1 April 2020, and further decreased from 4.49% to 4.34% effective from 1 May 2020.
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 to the Bank of England base rate, we have made a decision to reduce interest rates on some of our savings accounts with effect from 24 June 2020. We will inform impacted customers by personal notice at least two months before we make these changes.
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.