Bank of England base rate

Our Standard Variable Rate and Buy To Let Variable Rate are not directly linked to the Base Rate.
However, we do review these rates when there is a change in the Bank of England base rate. If there is a change to our Standard Variable Rate or Buy To Let Variable Rate, we'll automatically recalculate the standard monthly payment and send you a letter or secure e-message to your personal online banking account with the new amount.

We'll send a letter or a secure e-message to your personal online banking accounts at least 17 days before your standard monthly payment changes. This may usually mean your payment will change from the month following that in which the Bank of England base rate change announcement was made. For example, if the interest rate on your mortgage changes on 1 August and your monthly mortgage payment is due on 5 August, your standard monthly payment won't change until 5 September.

This will depend on the type of mortgage product you have and how much the rate has gone up or down. If you are unsure of what type of mortgage product you have and to find out how much interest you are paying, either look at your most recent mortgage statement or check it via online banking.

If you pay your mortgage by Direct Debit you do not need to do anything, as your standard monthly mortgage payments will be amended automatically. If you are paying your mortgage by any other method, it is your responsibility to amend your monthly payments to the new standard monthly mortgage payment amount. We'll send a letter or a secure e-message to your personal online banking accounts at least 17 days before your standard monthly payment changes. This may usually mean your payment will change from the month following that in which the Bank of England base rate change announcement was made. For example, if the interest rate on your mortgage changes on 1 August and your monthly mortgage payment is due on 5 August, your standard monthly payment won't change until 5 September.

We won't change your Flexible Payment unless the new standard monthly payment required to repay the loan by the end of the mortgage term becomes higher than the amount you have asked us to collect each month.

For example, if you've arranged to always pay £500 per month and your standard monthly payment rises 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 the repayment of your mortgage on track.

If you want to change or cancel a Flexible Payment Arrangement you should call us on 03456 00 61 61* or visit your local branch. Some branches are open 6 days a week.

This can occur if you have been making regular overpayments or you have made lump sum reductions to your loan without asking us to recalculate your standard monthly payments.

Whenever the interest rate is changed, the standard monthly payments are automatically recalculated to the minimum amount required to repay the loan balance, at the revised interest rate, over the remainder of the original term. As any previous overpayments will have reduced your loan balance, you don't need to pay as much in future to repay the loan by the end of the agreed term.

If you wish to arrange to increase your monthly payment amount, we can arrange for your monthly payments to be increased by setting up an overpayment (called a Flexible Payment Arrangement) so we can collect a higher amount by direct debit every month. To arrange this, call us on 03456 00 61 61* or visit your local branch.  Some branches are open 6 days a week.

We need 10 working days' notice to set up your Flexible Payment Arrangement. If it's less than 10 working days until your next payment, we'll set it up from the following one.

If you currently pay interest only, your standard monthly payment will be the amount you need to pay each month to cover the interest that has accrued on the capital balance of your loan. It is based on how much interest will be paid over the term divided by the number of monthly payments.

If you currently pay both capital and interest (known as capital repayment), your standard monthly payment is the amount you need to pay each month to cover both the interest that has accrued on the capital balance of your loan and part of the capital. It is calculated so as to ensure that, if you make all of the required payments in full and on time, your loan will be repaid by the end of the term as shown on your mortgage offer and/or mortgage illustration.

If you wish to arrange to increase your monthly payment amount, we can arrange for your monthly payments to be increased by setting up an overpayment (called a Flexible Payment Arrangement) so we collect a higher amount by Direct Debit every month. To arrange this, call us on 03456 00 61 61* or visit your local branch. Some branches are open 6 days a week. Please visit Existing HSBC Customers for additional information and how to apply. We need 10 working days' notice to set up your Flexible Payment Arrangement. If it's less than 10 working days until your next payment, we'll set it up from the following one.

We can arrange for your monthly payments to be increased by setting up an overpayment (called a Flexible Payment Arrangement) so we collect a higher amount by Direct Debit every month.

Please visit Existing HSBC Customers  for additional information and how to apply. We need 10 working days' notice to set up your Flexible Payment Arrangement. If it's less than 10 working days until your next payment, we'll set it up from the following one.

Yes you can subject to limitations. Please call us on 03456 00 61 61* or visit your local branch for details of your Annual Overpayment Allowance (AOA). As long as you don't go over your AOA for the year, you won't incur an Early Repayment Charge.

You can overpay by Flexible Payment Arrangement or by making ad-hoc lump sum payments and these will count towards your AOA. Once you exceed your AOA for the year, any additional overpayments within this period will incur an Early Repayment Charge.

Please contact us to discuss a reduction of your mortgage term and increasing your standard monthly mortgage payments to check if this is possible. This is for your protection to assess whether you can afford to pay a higher amount for the remainder of the shorter mortgage term. Please call us on 03456 00 61 61* or visit your local branch  (some branches are open 6 days a week) if you would like to know more about what it involves.

When we recalculate your standard monthly mortgage payment for a loan on a capital repayment basis, it must always be based on the term set out in your mortgage offer and/or mortgage illustration, so you always know the minimum standard payment you need to pay each month to ensure your loan is repaid by the agreed date.

If you currently pay interest only, your standard monthly payment will be the amount you need to pay each month to cover the interest that has accrued on the capital balance of your loan.

If you're making regular overpayments, you can always drop back to the standard monthly payment again if your circumstances change or if you have other priorities for your money.

If you wish to continue paying a higher amount so that your loan may be repaid sooner, you can do so by setting up a Flexible Payment Arrangement, or by increasing the amount of an existing one.

If you want to change a Flexible Payment Arrangement you should contact us on 03456 00 61 61* or visit your local branch. Some branches are open 6 days a week.

Please visit Existing HSBC Customers for additional information.

Yes that is usually possible. We offer a range of Fixed Interest Rates that allow you to fix your rate and payments for a set period. Changes to the Bank of England base rate will not affect your payments during your fixed rate period.

If you wish to apply to move to a different interest rate, regardless of whether you are currently on a fixed rate, tracker or variable rate, you may do so by following the steps above. 

You are able to change your mind during the switching process up until you accept your new mortgage offer. After this time, you will be bound by the terms and conditions of your new product which may include Early Repayment Charges if you wish to transfer to an alternative product.

We constantly review all of our products and will notify customers of any changes that may impact them.

HSBC doesn't currently offer savings accounts which are directly linked to the Bank of England base rate.

Customers won't see an immediate change to the rate of interest on their savings or investments. However, we are reviewing the interest rates on our accounts and will give customers 2 months' notice first before rates change.

Only HSBC Student Accounts are affected, where credit interest is directly linked to the Bank of England base rate.

No, all of our debit interest rates attached to our on sale products are not linked to the base rate.

However, there are a small number of existing accounts where the overdraft interest rate is linked to the Bank of England base rate.