What is the Bank of England Bank Rate?
It is the official Bank Rate set by the Bank of England and it affects the interest rates offered by Banks, Building Societies and other financial institutions. By changing the official Bank Rate, the Bank of England seeks to influence overall borrowing in the economy.
The interest rate on a Base Rate linked product will fluctuate in line with changes to the Bank of England Bank Rate – the rate of interest may increase or decrease over the term of the facility and this will affect both the interest charged on overdrafts/loans and the total repayment amount on loans.
If your interest rate is fixed, any change to the Bank Rate will not affect the interest rate during the fixed period. However the interest rate you move to after the fixed period ends may be variable and therefore could change in response to changes in the Bank Rate.
The current Bank of England Bank Rate is 1.75% (effective from 4th August 2022).
Use our Rate change calculator to work out how a change in Bank Rate could affect your loan or mortgage repayments.
All lending is subject to status
While all reasonable care has been taken to ensure that the information provided is correct, no liability is accepted by Bank of Scotland for any loss or damage caused to any person relying on any statement or omission. This is for information only and should not be relied upon as offering advice for any set of circumstances. Specific advice should always be sought in each instance.
There is always a possibility that interest rates may go down leaving a fixed rate loan at a higher level compared to a variable rate loan. However, if interest rates rise, a fixed rate loan will remain at the same rate.