Bank of England base rate FAQs

Today, Thursday 2 November the Bank of England announced a 0.25% increase in the base interest rate. This means your mortgage rate and subsequent monthly payments may be affected, depending on the type of mortgage you have.

I'm currently completing my new mortgage, will the announcement affect me?

If you’ve chosen a tracker mortgage your rate may change as a result. We’ll write to you to confirm your new rate before your first payment.

I'm on a fixed rate but my product is coming to an end this month, will I receive a letter?

Yes, we’ll write to you to confirm your new monthly payment five working days before the end of the month.

I'm on a Managed Rate, why isn’t my payment increasing?

As TMW's Managed Rates aren't linked to the Bank of England base rate, we’ve made the decision not to increase them at this time. TMW's Managed Rates continue to be competitively priced compared to the variable rates in the market and offer a high level of flexibility. In most cases, you will also have the option to switch to a new mortgage deal.

I'm on a Managed Rate, am I eligible to switch to a new deal?

If you're a TMW customer, please refer to www.tmwdirect.co.uk/oms to check if you're eligible for a new product.

Unfortunately we do not currently offer switcher products for DHLL and EMEX customers.

I’m applying for a new tracker. How does the base rate change affect me? (TMW customers only)

All mortgage tracker KFI and offer documents will reflect the new Bank of England base rate from Friday 3 November. For new customers completing on trackers from this date, the new base rate will be reflected upon completion.

How will you work out my new monthly payment amount?

We’ll use your outstanding balance, along with your new interest rate to calculate your new monthly payment. The total amount you owe will be distributed over the months remaining until your mortgage end date.

My rate has changed, what does this mean my payments will be?

To help you see what the Bank of England base rate change means for your interest only mortgage, we’ve created an example table below based on an increase of 0.25%.

Mortgage balance
Interest only monthly increase
Interest only annual increase
£50,000
£10
£120
£75,000
£16
£192
£100,000
£21
£252
£125,000
£26
£312
£150,000
£31
£372
£175,000
£36
£432
£200,000
£42
£504
£225,000
£47
£564
£250,000
£52
£624

Figures based on an interest only mortgage

My payment has changed, but can I continue to make overpayments?

Yes, if you’ve extra money available, it could be worthwhile paying as much as you can afford each month.

If you have a mortgage where an Early Repayment Charge applies, this will also apply if you make an overpayment of more than the overpayment allowance. So please refer to your annual mortgage statement or your original mortgage offer to check your limit.

I’ve been making regular overpayments, why hasn’t the term of my mortgage changed?

Unless you specifically ask for your term to be changed, we’ll continue to calculate payments to repay the mortgage over the agreed term. Any overpayment you’ve made has reduced the balance of the mortgage and this has reduced the interest you’re paying.

Why haven’t the rates on all my mortgage accounts changed?

If you have more than one account, your rate on other accounts may not change because, you have a fixed rate on your account, which won’t change until the end of your product term or you are on one of our Managed Rates.

Will my monthly mortgage payment automatically change to the new amount?

If you are currently paying by Direct Debit then this will automatically be changed and you do not need to do anything. However, if you are paying by any other method, including Standing Order, you will need to change the amount you pay with your bank so that it covers the new monthly commitment.