Interest rates have fallen

On Thursday 4 August 2016, the Bank of England reduced the Base Rate of Interest by 0.25%. This means the Base Rate is currently 0.25%.

As a result, the interest rate that applies to all of our Tracker mortgages and loans linked to the Bank of England Base Rate has already decreased by 0.25% in line with the Terms & Conditions of these accounts.

Landmark has reviewed the impact this has on our Standard Variable Rate (SVR) and although the SVR is not linked to the Base Rate, we are pleased to confirm that we will be reducing our SVR by 0.15% to 4.64%. This change will take effect from 1 October 2016.

If you are a customer who is affected by an interest rate change, we will write to you before any change to the interest rate or monthly payment that applies to your account. This letter will confirm both the date when the new interest rate will apply and the specific impact on your monthly payments. Until we send a letter to you, there is no need for you to take any action.

The impact of the interest rate change on your monthly payments will depend on a number of factors, such as the type of mortgage you have, the current balance and remaining term.

Please find answers to a number of customer questions below to help explain the potential impact of the interest rate change on your mortgage.

Please read this information before contacting us with a query.

Customer Questions & Answers

What is my new interest rate and monthly payment?

If you are a customer who is affected by an interest rate change, we will write to you before any change to the interest rate or monthly payment that applies to your account. This letter will confirm both the date when the new interest rate will apply and the specific impact on your monthly payments. Until we send a letter to you, there is no need for you to take any action.

The impact of the interest rate change on your monthly payments will depend on a number of factors, such as the type of mortgage you have, the current balance and remaining term.

Will my interest rate and monthly payment change?

If you are a customer with a Tracker mortgage or loan linked to the Bank of England Base Rate, your interest rate has already decreased by 0.25% in line with the Terms & Conditions of your account.

We are also reducing our Standard Variable Rate (SVR) by 0.15% to 4.64%.

We have already written to customers affected by the Base Rate Change. We will shortly be writing to all customers who will see their monthly payment change as a result of the SVR change.

Find out more about our Rates, fees and charges.

When will my interest rate and monthly payment change?

If you are a customer with a Tracker mortgage or loan linked to the Bank of England Base Rate, your interest rate has already decreased by 0.25% in line with the Terms & Conditions of your account.

We are also reducing our Standard Variable Rate (SVR) by 0.15% to 4.64%.

This change will take effect from 1 October 2016.

We will shortly be writing to all customers who will see their monthly payment change as a result of the SVR change.

Do I need to do anything now?

You do not need to take any action at this stage and should continue to make your monthly payments as usual.

If you are a customer who is affected by an interest rate change, we will write to you before any change to the interest rate or monthly payment that applies to your account. This letter will confirm both the date when the new interest rate will apply and the specific impact on your monthly payments. Until we send a letter to you, there is no need for you to take any action.

Will my monthly payment fall if the interest rate reduces?

In most cases, a lower interest rate will result in a lower monthly payment - although this is not always the case.

There are a number of important factors that can affect your new monthly payment when an interest rate change occurs. Unless you have recently asked us to recalculate your monthly payment, differences can arise for a number of reasons, for example where you have;

  • incurred any additional fees and charges;
  • taken a payment holiday;
  • not paid ground rent/service charges and we have paid these on your behalf;
  • made reduced monthly payments for any reason;
  • missed any monthly payments for any reason.

The impact of these differences on your monthly payment may be exaggerated if you only have a short outstanding term remaining on your mortgage or loan.

If you are a customer who is affected by an interest rate change, we will write to you before any change to the interest rate or monthly payment that applies to your account.  This letter will confirm both the date when the new interest rate will apply and the specific impact on your monthly payments. Until we send a letter to you, there is no need for you to take any action.

Could my monthly payment actually go up when the rate falls?

Yes, in some cases this can happen. Following an interest rate reduction, your monthly payment could increase for a number of reasons, all of which are in line with the normal operation of your account. For example, if you have;

  • incurred any additional fees and charges;
  • taken a payment holiday;
  • not paid ground rent/service charges and we have paid these on your behalf;
  • made reduced monthly payments for any reason;
  • missed any monthly payments for any reason.

The impact of these differences on your monthly payment may be exaggerated if you only have a short outstanding term remaining on your mortgage or loan.

What if I am struggling to afford my monthly payments?

If you are worried about making your mortgage payments, you should call us immediately. The sooner you speak to us, the more we can usually do to help. We will always consider your personal circumstances and be fair and considerate at all times.

Alternatively, you can visit our Personal Support section for details of how we can help and details of a number of independent organisations offering free support and advice who can help you keep your finances on track. They provide impartial information and support if you are experiencing (or anticipate) financial problems.