Following the decision by the Monetary Policy Committee to increase the Bank of England Base Rate to 0.50%, we are contacting you to let you know that we will increase our new business Tracker mortgage rates to reflect this.
The changes we are making solely affect our Tracker deals and reflect the increased Bank of England Base Rate with no change to the Tracker differential.
Updated Tracker rates will be available from 3 November 2017. A summary of our key Tracker deals following the update is as follows:
- 2 Year Residential Tracker Rate at 65% LTV will move to 1.43% (BoE + 0.93%) with a £995 fee
- 2 Year Freedom to Fix Tracker Rate at 65% LTV will move to 1.64% (BoE + 1.14%) with a £995 fee
- 2 Year Flexible Tracker Rate at 65% will move to 1.74% (BoE + 1.24%) with a £995 fee
- 2 Year BTL Tracker Rate at 60% LTV will move to 1.79% (BoE + 1.29%) with a £995 fee
How will we treat pipeline cases?
| Stage in pipeline | Our approach |
| Pre-offer, including applications received today | The application will move through the process as normal. The Offer of Loan will reflect the updated Bank of England Base Rate and monthly payment. |
| Post-offer (pre-completion) including offers issued today | We will issue a letter to your client stating the updated Bank of England Base Rate and monthly payment. |
| Completed up to and including today | These will be treated as existing customers as outlined below. |
Existing customers
Customers whose mortgage rate is directly linked to the Bank of England Base Rate will be contacted to advise that their monthly payment will change on 1 January 2018 in line with their mortgage terms and conditions.
Additional information
All other product features remain unchanged. We are reviewing the pricing of our broader product range, including our Standard Variable Rate, and will provide further updates as necessary.
