If you’re on a fixed-rate, there'll be no change to your payments.
If you’re on a tracker mortgage and your overpayment is made via the same Direct Debit as your standard monthly payment, there may be an impact on your payments.
If your Direct Debit is set to a 'Total' amounteach month and there's an increase in the Bank of England base rate, your Direct Debit will only change if your standard monthly payments exceed your set total. For example, if you werepaying£500 each month via Direct Debit, that would be broken down to:
- £450 as your standard monthly payment
and - £50 as a top-up overpayment to make it to £500 per month
If the standard payment increases to £475 per month, then the top-up overpayment would reduce to £25 per month. If the standard payment increases to £550 per month, the top-up overpayment would be cancelled.
If your Direct Debit is set to 'Additional' amount each month and there's an increase in rates, your Direct Debit will increase. For example, if you werepaying £500each monthvia Direct Debit, that would be broken down to:
- £450 as your standard monthly payment
and - £50 as an additional regular monthly overpayment
If the standard payment increases to £550 per month, then with the additional overpayment of £50, your new Direct Debit amount would be £600 per month.
Find out more abouthow a base rate change could affect your mortgage.
