On Thursday 3 August, the Bank of England (BoE) base rate increased by 0.25% from 5.00% to 5.25%.
Santander tracker products will increase by 0.25% from the beginning of September. Payments will change from October onwards. This includes the Follow-on Rate, which will increase by 0.25% to 8.50%.
Alliance & Leicester tracker products will increase by 0.25% from the beginning of September and customers’ payments will also change from September.
Standard Variable Rate (SVR) for both Santander and Alliance & Leicester is not changing and will stay at 7.50%.
If a customer’s existing mortgage is affected, they’ll receive a letter notifying them of their new interest rate and new monthly payment at least 7 days before their monthly payment changes.
f 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, including the Follow-on Rate, on our new business and product transfer ranges will increase in line with the base rate on Wednesday 9 August.
Further information
Any pipeline applications already submitted and/or offered are not affected so you don’t need to do anything.
Take a look at our base rate FAQs for more information