Bank of England base rate change

4 min read

On Thursday 16 December 2021 the Bank of England base rate increased from 0.10% to 0.25%. As a result of this, we’re reviewing our interest rates.

Lending Products (including Invoice & Asset 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 0.15%, in accordance with the terms of the agreement. This change will be effective from 16 December 2021.

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 0.15% from 16 December 2021.

Asset Finance

If you have a Variable Rate Hire Purchase or Variable Rate Finance Lease agreement with Santander and the interest rate is linked to the Bank of England base rate, then the interest rate will increase by 0.15%. This change will be effective from the 16 December 2021.

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 0.15%, in accordance with the terms of the agreement. This change will be effective from 16 December 2021.

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.

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 0.15%. This change will be effective from 1 January 2022.

Unarranged overdrafts

Our Unarranged Overdraft interest rate is linked to the Bank of England base rate so will increase by 0.15%. This change will be effective from 1 January 2022.

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 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 0.15% from 1 January 2022.