05 August 2016
Following the decision by the Monetary Policy Committee to reduce the Bank of England Base Rate by 0.25% to 0.25%, we will reduce our Standard Variable Rate and Buy to Let Variable Rate by the full amount of the Bank Base Rate change. For existing customers, our residential Standard Variable Rate will reduce by 0.25% to 4.54% and our Buy to Let Variable Rate will reduce by 0.25% to 4.74% from 1 September 2016. These changes will be reflected in our new business and product transfer products from Friday 5 August 2016.
BoE Tracker Mortgages
Also to reflect the lower Bank of England Base Rate, we have reduced the rates on our range of Tracker mortgages. These changes reflect the full reduction in BoE Base Rate with no change to the Tracker differential.
Additional Information
New products reflecting our reduced Standard Variable Rate and Buy to Let Variable Rate, along with updated Tracker rates are available from 8am on Friday 5 August. A summary of our key Tracker deals following the update is as follows:
How will we treat pipeline cases?
Pre-offer, including applications received on 4 August 2016: the application will move through the process as normal. The Offer of Loan will reflect the updated rate and monthly payment.
Post-offer (pre-completion) including offers issued on 4 August 2016: we will issue a letter to your client stating the updated rate and monthly payment.
Completed up to and including 4 August 2016: these will be treated as existing customers as outlined below.
Existing customers
We will soon contact existing customers who are on our Standard Variable Rate or Buy to Let Variable Rate, or have an element of their mortgage linked to either rate – such as a Personal Secured Loan, so that they are aware that their rate and monthly repayment will change on 1 September 2016 to reflect the reduction.
Customers whose mortgage rate is directly linked to the Bank of England Base Rate will also be contacted to advise that their monthly payment will change on 1 October 2016 in line with their mortgage terms and conditions.
For full details of the updated range, please view Mortgage Update issue 98.