Response to the Bank of England base rate change
Following the decision to increase the Bank of England base rate by 0.25% from 0.50% to 0.75%.
We can confirm the following for existing mortgage customers:
- Santander tracker mortgage products linked to base rate will automatically increase from the beginning of April 2022. This includes Santander’s Follow-on Rate (FoR), which will increase from 3.75% to 4.00%.
- Alliance & Leicester tracker mortgage products linked to base rate will automatically increase at the beginning of May 2022.
- Santander and Alliance & Leicester Standard Variable Rates will increase by 0.25% from 4.74% to 4.99% from the beginning of May 2022.
If a customer’s existing Santander 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.
All tracker rates and reversionary rates on our new business and internal transfer tracker products will increase in line with the base rate on Wednesday 23 March.
Any pipeline applications already submitted and/or offered are not affected so you do not need to do anything.