Cashback Remortgages · Mortgage rates
How the Bank Rate Affects Your Mortgage
The Bank of England's Bank Rate influences mortgage costs, but the effect on you depends on your product type. Not every mortgage moves with it directly.
Who is affected and how
Tracker mortgages follow the Bank Rate directly, so change with it. Standard variable rates are set by lenders and often move roughly in line, but not automatically. Fixed rates do not change during the fixed period.
New fixed-rate pricing reflects wider expectations, not just the current Bank Rate.
Planning around it
If you are on a fix, a Bank Rate change affects you mainly when you next switch. If you are on a variable rate, a change can alter your payment. Test a higher rate to check your budget copes.
Sources and further reading
General mortgage information, not a personal recommendation. Lender criteria and scheme rules can change. Ask an adviser about your circumstances and a solicitor or tax adviser about legal or tax questions. Your home may be repossessed if you do not keep up repayments on your mortgage. Most buy-to-let mortgages are not regulated by the FCA.
Discuss the next step for your mortgage
Understand your options before you make a decision.