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Bank of England Base Rate Change

On Thursday 4 August 2016 the Bank of England base rate reduced from 0.50% to 0.25%. As a result of this, we’re reviewing our interest rates.

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.

Loan, Overdraft, Commercial Mortgage and Finance products

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 reduce by 0.25%. This change will be effective from 4 August 2016. 

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 then the Discount Rate (and resulting Discount Charge) you are charged will reduce by 0.25% from 4 August 2016.

Hire purchase (Asset Finance)

If you have a hire purchase agreement with Santander Asset Finance and the interest rate is linked to the Bank of England base rate then the interest rate will reduce by 0.25%. This change will be effective from 4 August 2016. 

Commercial mortgages

If you have a Commercial Mortgage that is linked to the Bank of England base rate, the new interest rate will depend on the current interest rate and how that compares to the Minimum Lending Rate for your commercial mortgage (where applicable and as defined in your facility agreement).

Difference between current interest rate and Minimum Lending RateChange to interest rate following the 0.25% reduction in Bank of England base rateExample for illustrative purposes only
Current interest rateMinimum Lending RateNew interest rate
At Minimum Lending RateThe interest rate will not change5.00%5.00%5.00%
Above Minimum Lending Rate and the difference between the current interest rate and the Minimum Lending Rate is greater than or equal to 0.25%The interest rate will reduce by 0.25%. This change will be effective from 5 August 2016.5.00%4.00%4.75%
Above Minimum Lending Rate and the difference between the current interest rate and the Minimum Lending Rate is less than 0.25%The interest rate will reduce to the Minimum Lending Rate. This change will be effective from 5 August 2016.5.00%4.90%4.90%

We’ll write to you in early September to confirm more details about your specific commercial mortgage.

Overdrafts (sterling only)

Arranged (also known as Authorised) Overdrafts:

If you have an Arranged Overdraft (including within a Commercial Notional Pooling or Cross Currency Overdraft structure) that is linked to the Bank of England base rate then the interest rate will reduce by 0.25%. This change will be effective from 1 September 2016.

Unarranged (also known as Unauthorised) Overdrafts:

Our Unarranged Overdraft interest rate is linked to the Bank of England base rate so will reduce by 0.25%. This change will be effective from 1 September 2016.

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.

Banking and Deposit Accounts

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 reduce by 0.25% on 1 September.

Any reduction to interest rates will be subject to a minimum rate of 0.05%. If your rate is currently below 0.05% it will not change.

We will write to you to confirm the details of this change in August. 

Products with variable interest rates

We’re currently reviewing our variable interest rates. If we make any changes to our variable rate products, we will notify you of any changes in advance so you can take appropriate action if you need to.

If you have any questions please contact your relationship team.

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