Changes to mortgage rates

Bank of England base rate and your mortgage

What is the Bank of England base rate?

The current Bank of England base rate is 5.25% as of 20th June 2024. The next review is scheduled for 1st August 2024. The Bank of England (BoE) sets a base rate to charge other lenders when they borrow money. Changes to the base rate influences the rate lenders are able to offer for mortgages and loans to their customers.

There is no need to call us, we'll write to you if there are any changes to your payments. All banks and lenders offering types of credit will usually be affected by changes to the base rate. Visit the Bank of England website to find out more and get the latest updates about changes to the base rate.

Not sure when your mortgage deal ends?

If you are an existing NatWest customer, you can find information on your current interest rate and any end dates by logging into Manage my Mortgage. You can also:

  • Switch to a new fixed rate deal
  • Work out any early repayment charges
  • Make overpayments on your mortgage
  • Extend or reduce mortgage term

How could base rate changes affect your mortgage?

One of the biggest concerns for people when there are changes to the base rate is how this will affect their mortgage. As one of the largest loans people take, changes in mortgage costs could have a big impact on your cost of living. If your mortgage is with us, we will always keep you informed of any upcoming changes to your mortgage payment amounts.


If you are currently on a fixed rate deal, changes in the Bank of England base rate will not affect your fixed-rate mortgage payments until your agreed fixed term comes to an end. Following your fixed term ending, your mortgage will move to a variable rate which could be influenced by the changes to the base rate. NatWest will contact you when you are eligible to secure a new deal on your mortgage.

Information Message

Tracker rate

Any changes in the Bank of England base rate could mean that the rate you pay for your tracker mortgage changes. Tracker mortgages follow the National Westminster Bank Plc Base Rate which is influenced by the Bank of England base rate. An increase there could see the rate you pay increase too. Likewise, if this rate goes down, the rate you pay should follow. You might have the option to change to a fixed rate mortgage without an early repayment charge.

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Standard Variable Rate

The NatWest Standard Variable Rate (SVR) is the interest rate you will pay when your fixed rate or tracker period ends. Our Standard Variable Rate can change at any time and is not always affected by the Bank of England Base Rate. We determine our SVR and this could go up or down at any time.

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Why does the base rate change?

The Bank of England base rate is reviewed 8 times per year and it didn't increase on 14th December 2023.  The Monetary Policy Committee and the Bank of England uses it as a means to influence the UK economy and control inflation. Volumes of borrowing and spending could lead to changes in the price of goods. Making it more or less expensive to borrow money can encourage people to save or spend and leads to changes in inflation. The Bank of England website explains in further detail why interest rates are going up

Find out what your payments might be

Our interest rate change calculator can give you an idea of what your mortgage payments could be. If you've already been offered a new interest rate, it will let you see what your new monthly payments might be.

What's the difference between the Bank of England and National Westminster Bank Plc Base Rate ?

The Bank of England is the central bank of the United Kingdom and their job is to ensure a stable and strong economy. They set their own base rate which in turn influences the rate lenders are able to offer for products like mortgages. Changes in the Bank of England Base Rate are one of the main reasons we change our National Westminster Bank Plc Base Rate, but it is not the only reason. We have full control over our own base rate and this could go up or down regardless of what happens to the Bank of England base rate. Find out more about the Bank of England and what they do.

Worried about mortgage affordability?

If you are worried about mortgage affordability or are currently struggling to keep up with payments, we may be able to help. Please get in touch with us as soon as possible so we can discuss your options. We have included ways to get in touch below, but you can find more information on the support available in our mortgage charter.

Get in touch with us about affordability

Mobile App

Go to the home screen of your mobile banking app. Tap ‘Help’ at the bottom of the screen, then 'Message us' to start a chat, quoting 'struggling financially'. Criteria apply.

Online Banking

Log into Online Banking. From your home screen, click ‘Chat Now’ to start a chat, quoting 'struggling financially'. Criteria apply. 

Our website

You can find Cora on the bottom right of your screen waiting to help on some of our web pages (including this one). Quote 'struggling financially' when starting the chat.

Looking to remortgage with us?

If your current mortgage deal is ending then you might be considering a new deal with your current lender or a new lender. You might be thinking about borrowing more money, releasing equity or changing the number of years remaining on your mortgage. For more information on why you might remortgage, you can view our detailed remortgaging guide.

Can I overpay my mortgage?

If you are currently on a fixed rate mortgage deal, there might be restrictions on the amount you can overpay each year. If you exceed this amount you might incur an Early Repayment Charge so it is worth referring to your mortgage terms. If you are on our Standard Variable Rate then there might not be any restrictions. Find out how overpaying on your mortgage might affect your payments with our calculator.

Frequently asked questions about base rate

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