Bank of England base rate reduction – 18 December 2025
On Thursday 18 December, the Bank of England base rate (Bank Rate) was reduced from 4.00% to 3.75%.
As a result, the interest rate on all our mortgages that track the Bank Rate will also reduce by 0.25% from 1 January 2026.
Our Standard Variable Rate (SVR) will also reduce by 0.25% to 8.50% from 1 January 2026.
If your interest rate is changing, we’ll write to you at least four working days before your rate changes to tell you your new rate and monthly payment amount.
You don’t need to do anything until you receive our letter.
Quickly estimate your new monthly payment
You can check the effect of a rate reduction now using our new rate change calculator.
You’ll need to know your current balance, repayment type, interest rate and remaining term. The calculator will show you how much your monthly payment is likely to change.
Use calculator