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Santander’s response to the Bank of England base rate change
On Thursday 3 November, the Bank of England (BoE) base rate increased by 0.75% from 2.25% to 3.00%.
Following this decision, we can confirm the following for existing mortgage customers:
Santander tracker products will increase by 0.75% from the beginning of December 2022, but customers’ payments won’t increase until January 2023. This includes the Follow-on Rate, which will increase by 0.75% to 6.25%
Alliance & Leicester tracker products will increase by 0.75% from the beginning of December 2022 and customers’ payments will also change from December
Please note that Standard Variable Rates (SVR) for both Santander and Alliance & Leicester will increase by 0.01%, not 0.75%. This is because these rates are not linked to the BoE base rate.
Santander’s SVR will increase by 0.01% to 6.25% from the beginning of December 2022, but customers’ payments won’t increase until January 2023
Alliance & Leicester’s SVR will increase by 0.01% to 6.25% from the beginning of December 2022 and customers’ payments will also change from December
If a customer’s existing mortgage is affected, they’ll receive a letter notifying them of their new interest rate and new monthly payment a minimum of 5 days before their monthly payment changes.
If they’re worried about how interest rate increases will affect their mortgage, they can find useful tools and tips in the ‘Bank of England base rate and your mortgage’ section of the Manage your mortgage page.
All tracker rates and reversion rates on our new business and internal transfer products will increase in line with the base rate on Thursday 10 November.
Further information
Any pipeline applications already submitted and/or offered are not affected so you do not need to do anything.