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Why might my interest rate change?
Your mortgage interest rate may be affected if the Bank of England Base Rate changes. But it could also change if your current deal ends.
Our guide will help you understand the options available if your rate changes.
What is the Bank of England Base Rate and who sets it?
- The Bank of England (BoE) is the central bank of the UK
- Base Rate is an interest rate set by the Bank of England’s Monetary Policy Committee
- The Bank of England Base Rate is one of the most important interest rates because it tends to influence all the other interest rates, such as those set by banks, including mortgage, loan and savings rates and rates for businesses.
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How could it affect you?
- The Bank of England Base Rate is taken into account as a factor when deciding the Royal Bank of Scotland Bank base rate
- Therefore, if the Bank of England Base Rate changes, your monthly payment may be affected if you hold a mortgage, loan or savings product
- We will always notify you in advance of changes to any of our products so you have plenty of time to review your options.
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What happens if my mortgage rate changes?
- If you are on a fixed rate mortgage, you won’t be affected by higher interest rates until your deal expires. When you're coming to the end of your deal, you may want to remortgage or switch your mortgage onto a new fixed rate however, you may find rates higher than when you last fixed.
- If you are on a variable mortgage rate, your monthly payments will increase in line with the Bank of England’s changes. You may want to consider remortgaging or switching your mortgage to a fixed rate so that you know what your monthly mortgage payments will be.
What can I do next?
If your mortgage rate and repayments are going to change, there are a number of steps you may want to take.
Work out your budget
Use our calculator to see how much you can afford by working out your monthly income and outgoings.
Think about a new mortgage deal
Take a look at our mortgage switcher information to see if it would be suitable to move to a new deal.
Make mortgage overpayments
If your rate goes down, you could make overpayments in a lump sum or by increasing your monthly payments. Use the calculator to see the impact this would have. Charges may apply.
Need some help?
Call us
We're on hand to arrange a phone or video call with one of our qualified mortgage professionals. We can also help with any general queries about the process.
Call us on ${dn-0800 056 0567}
Opening hours: Mon-Fri 8am-6pm, Sat 9am-4pm, Sun Closed. Excluding public holidays.
Buy to Let? NatWest only provide Buy to Let mortgages online for small portfolio landlords.
- Please use the NatWest tools and guidance designed to help you complete your mortgage application online.
- We do not provide advice on Buy to Let mortgages but if you need technical help with your online application, get in touch so we can provide support.
- If you are not a small portfolio landlord, or you wish to apply with a mortgage professional, NatWest Buy to Let mortgages are available via mortgage brokers.