Bank of England Base Rate Change

On Thursday, 2 August 2018 the Bank of England base rate increased from 0.50% to 0.75%.

As a result of this, we’re reviewing our interest rates.

Interest Rate Finder

If you have a loan, overdraft, commercial mortgage or finance product read more here.

If you have a deposit or banking product read more here.

Loans, Overdrafts, Commercial Mortgages and Finance

Variable Rate Loans

If you have a variable rate loan that is linked to the Bank of England base rate then the interest rate will increase by 0.25%, in accordance with the terms of the agreement. This change will be effective from 2 August 2018.

Invoice Finance

If you are an Invoice Finance customer of Santander UK plc and the Discount Rate applied under your sales finance agreement with us is linked to the Bank of England base rate for your GBP facility then the Discount Rate (and resulting Discount Charge) you are charged will increase by 0.25% from 2 August 2018.

Asset Finance

If you have a Hire Purchase or Finance Lease agreement with Santander Asset Finance and the interest rate is linked to the Bank of England base rate then the interest rate will increase by 0.25%. This change will be effective from 2 August 2018.

Commercial Mortgages

If you have a variable rate Commercial Mortgage that is linked to the Bank of England base rate, and your facility agreement does not include a Minimum Lending Rate (MLR), then the interest rate will increase by 0.25%, in accordance with the terms of the agreement. This change will be effective from 2 August 2018.

If your Commercial Mortgage facility agreement does have a Minimum Lending Rate, your interest rate will increase if the Bank of England base rate plus the agreed Margin exceeds the Minimum Lending Rate.

Examples for illustrative purposes only
Examples.
Minimum Lending Rate 5.00%
MarginBoE Base Rate existing 0.50%BoE Base Rate increase to 0.75%
Margin plus BoE Base RateExisting interest rate chargedMargin plus BoE Base RateNew interest rate charged
Interest rate charged increases as margin plus BoE base rate is higher than the Minimum Lending Rate4.45%4.95%5.00%5.20%5.20%
Interest rate charged increases as margin plus BoE base rate is higher than the Minimum Lending Rate5.00%5.50%5.50%5.75%5.75%
Interest rate charged increases as margin plus BoE base rate is higher than the Minimum Lending Rate4.05%4.55%5.00%4.80%5.00%

GBP Overdrafts (including Commercial Notional Pooling & GBP accounts in Cross Currency Overdraft structures)

Arranged Overdrafts

Our Arranged Overdraft interest rate is linked to the Bank of England base rate, so will increase by 0.25%. This change will be effective from 1 September 2018.

Unarranged Overdrafts

Our Unarranged Overdraft interest rate is linked to the Bank of England base rate so will increase by 0.25%. This change will be effective from 1 September 2018.

For all products

Please note that the information provided is based on our standard Terms and Conditions. Your individual facility letter or agreement may differ and therefore we recommend that you refer to these documents and the Terms and Conditions which were issued with it.

If you have any questions please contact your relationship team.

SCC Banking and Deposit Products

We’re reviewing our interest rates and we will notify you of any changes to your account. Changes to rates will be communicated on our website.

Products linked to the Bank of England base rate

All savings and current accounts with interest rates linked to the Bank of England base rate will increase by 0.25% on 1 September 2018.

Protecting your money - Financial Services Compensation Scheme (Opens in a new window)