The Bank of England announced two emergency base rate reductions recently, will my interest rate reduce in line with this?
If your loan is on a Standard Variable Rate, or is a Base Rate Tracker then the full rate reduction will be applied to your loan. The Bank of England has reduced rates from 0.75% to 0.1%. This will take effect from April 10th and we will write to you soon with your new payment amount
When will the interest rate reduction be effective from?
The reduced interest rate will be effective from 10th April 2020, 30 days from the Bank of England’s first announcement
When will my monthly payments change
We will be writing to you explaining what your new monthly payment will be and when this new payment will begin. The new lower interest rate will be applied to your loan on 10th April 2020
What do I need to do to change my payment
If you pay by Direct Debit, you don’t need to do anything. We will write to you confirming any change to your monthly payment before the change is made.
If you do not pay by Direct Debit, following receipt of the letter confirming your new payment amount, you will need to make sure you change the amount you pay to us when your next payment becomes due.
If you are in a special payment arrangement, there will be no changes to this until it reaches the agreed review date.