Top of main content

Bank of England base rate

Find out what a change to the Bank of England base rate could mean for you

On this page

Interest rate cut


The Bank of England announced an interest rate cut on 19 March 2020 in response to the coronavirus (COVID-19) outbreak. The base rate has changed to 0.1%. This follows a cut from 0.75% to 0.25% earlier in March.

You may have received a letter about the change on 11 March. We’ll be sending a revised letter confirming any further changes. There’s no need to call us - we’ll write to you if there are any changes to your payments as a result of the base rate reduction on 19 March.

The base rate is the interest rate the Bank of England charges on the money it lends to financial institutions like HSBC.

If the base rate changes, the interest rates that apply to financial products can change too. That’s because the cost of providing some products is directly linked to the base rate.

What a base rate change could mean for your mortgage

What a change in base rate means for you depends on the type of mortgage you have and how much the rate has gone up or down. 

This table shows the impact of a base rate change on the interest rates for our mortgages. If you're not sure what type of mortgage you have or how much interest you're paying, have a look at your most recent mortgage statement or check via online banking.
Mortgage type Impact of base rate change
  • Tracker rate
Your mortgage interest rate will change within a day. This will affect the amount of interest you pay. 
  • Fixed rate
No change – the mortgage interest rate will stay the same until the end of the fixed rate period. When the fixed rate period comes to an end, your mortgage will usually move to our Standard Variable Rate (unless you have arranged to move to another fixed rate or another type of rate).
  • Standard Variable Rate
  • Buy to Let Variable Rate
No automatic mortgage interest rate change – these rates are not directly linked to the base rate – but we do review these rates whenever the base rate changes.
  • Homebuyer CAT Standard
  • Homebuyer Variable Rate
  • Homebuyer Large Advance Variable Rate
No automatic mortgage interest rate change – these rates are not directly linked to the base rate – but we do review these rates whenever the base rate changes. We guarantee that the interest rate will never be more than 1% above the base rate’.
  • Second Charge Equity Release Loan Variable
  • Standard Extra Large Advance House Mortgage Rate
Your mortgage interest rate will change within 30 days.
  • Amanah Home Finance
There is no impact to Amanah Home Finance products. We review mortgage rates periodically and will contact you when your rate changes.
This table shows the impact of a base rate change on the interest rates for our mortgages. If you're not sure what type of mortgage you have or how much interest you're paying, have a look at your most recent mortgage statement or check via online banking.
Mortgage type
  • Tracker rate
Impact of base rate change Your mortgage interest rate will change within a day. This will affect the amount of interest you pay. 
Mortgage type
  • Fixed rate
Impact of base rate change No change – the mortgage interest rate will stay the same until the end of the fixed rate period. When the fixed rate period comes to an end, your mortgage will usually move to our Standard Variable Rate (unless you have arranged to move to another fixed rate or another type of rate).
Mortgage type
  • Standard Variable Rate
  • Buy to Let Variable Rate
Impact of base rate change No automatic mortgage interest rate change – these rates are not directly linked to the base rate – but we do review these rates whenever the base rate changes.
Mortgage type
  • Homebuyer CAT Standard
  • Homebuyer Variable Rate
  • Homebuyer Large Advance Variable Rate
Impact of base rate change No automatic mortgage interest rate change – these rates are not directly linked to the base rate – but we do review these rates whenever the base rate changes. We guarantee that the interest rate will never be more than 1% above the base rate’.
Mortgage type
  • Second Charge Equity Release Loan Variable
  • Standard Extra Large Advance House Mortgage Rate
Impact of base rate change Your mortgage interest rate will change within 30 days.
Mortgage type
  • Amanah Home Finance
Impact of base rate change There is no impact to Amanah Home Finance products. We review mortgage rates periodically and will contact you when your rate changes.

Any changes to your mortgage interest rate will affect how much interest you have to pay. We'll automatically recalculate your payments and send you a letter or a secure message in online banking with the new amount at least 17 days before your monthly payment changes. This change will normally happen the month after the Bank of England base rate changes.

For example, if the interest rate on your mortgage changes on 1 November and your payment is due on 5 November, payments for the new amount will start on 5 December. 

What should I do to make sure I’m paying the right amount?

If you pay your mortgage by Direct Debit, you don’t have to do anything. We’ll update your monthly payments automatically.

If you're paying any other way, it's your responsibility to change your payments to the new amount. 

I make mortgage overpayments every month through Direct Debit. Do I need to do anything?

We won't change what you’ve agreed to pay unless your new standard monthly payment is now higher than the amount you've asked us to collect each month. 

For example, if you've arranged to pay £500 per month and your standard monthly payment goes up from £450 to £475 per month, we'll continue to collect £500. However, if the standard monthly payment rises to £550, we'll automatically collect £550 to keep you on track to repay your mortgage at the mortgage term.  

If you want to change or cancel your overpayments, just send us a message in online banking. Or call us on 0345 766 2255, Monday - Friday 8am - 6pm and Saturday 8am - 5.30pm.

Can I fix my mortgage rate?

Yes, usually. We offer a range of fixed rate mortgages that let you fix your rate – and payments – for a set period. If the Bank of England base rate changes during your fixed rate period, it won’t affect your payments.

If you’d like to move your mortgage to a different interest rate, you have 3 options:

  • to receive advice on the most suitable HSBC mortgage for you, or to change your loan term, please arrange an appointment with our Mortgage Specialists on 0800 169 6333
  • if you're happy to choose a rate without receiving advice, you can apply to switch your mortgage online by logging on to online banking and following the Rate Switcher instructions. You can apply, receive and accept a new mortgage offer online. Please note that you can't amend the loan term, repayment type or any other details with this service, nor will you benefit from the protections you receive if you take advice
  • you can receive face-to-face help and advice from one of our mortgage advisers at your local HSBC branch

I'm currently switching my mortgage product – can I change my mind?

Yes, you can change your mind right up until you accept your new mortgage offer. After that, the terms and conditions of your new product will apply. This could mean early repayment charges if you transfer to a different mortgage.

The Department for Work and Pensions (DWP) pays some of my mortgage – will the amount it contributes change?

The DWP calculates the support you receive for your mortgage and will let you know if there’s any change. If there is, you'll need to contact us to check that what you’re paying covers your revised standard monthly payment.

Please contact the DWP directly if you have any questions about how much it is contributing to your mortgage. It’s your responsibility to let the DWP know if your standard monthly mortgage payments change.

What a base rate change means for your savings

The savings accounts we offer at the moment aren’t directly linked to the Bank of England base rate. That means you won’t see an immediate change to the rate of interest on your savings or investments. 

However, we do review the interest rates on our accounts after a change to the base rate. We’ll let you know promptly should we make any changes.

Other products

Current accounts

A change to the base rate won’t affect your current account. 

Overdrafts

Most of the debit interest rates attached to our products are not linked to the base rate. However, we do have a small number of existing accounts where the interest rate is linked to the Bank of England base rate and so will change accordingly.

Credit cards and loans

The rates that apply to these products aren’t directly linked to the base rate. We constantly review all of our products and will always let you know about any changes that may affect you.

Your home may be repossessed if you do not keep up repayments on your mortgage.

It’s easy to get in touch online. Talk to us directly through our chat channels.