Bank of England Base Rate linking

  • What is the Bank of England Base Rate?

    The Bank of England Base Rate (also known as Bank Rate) is the interest rate set by the Bank of England.

    The Monetary Policy Committee of the Bank of England meets around eight times a year to set Bank Rate; their decision is based on a number of factors, including economic conditions.

    The Bank Rate has a direct impact on interest rates generally, so we want to make sure you can clearly see how changes to it affect the interest rates you are charged.

    If you'd like to know more about the Bank Rate, go to the Bank of England website.

  • Could rates go down as well as up?

    The Bank of England Bank Rate can go up or down or stay the same. How it moves will depend on the decision of the Monetary Policy Committee of the Bank of England and their view of a number of factors, including economic conditions. We are creating a direct link between your interest rates and the Bank Rate so that the interest rates you pay will move in line with any changes to Bank Rate.

    We will always let you know about the change on the next statement you get following any change. If you pay your full outstanding balance in full and on time every month, there will be no change in the amount you pay.

    Standard interest rates on aqua advance will not be linked to the Bank Rate whilst you are still eligible for annual rate decreases on your advance account (normally the first 3 years). Once you have received all the annual rate decreases for which you are eligible, your standard interest rates will then be linked to Bank Rate. Your interest rates will also be linked to Bank Rate if you stop being eligible for interest rate reductions because you do not make your contractual minimum payment in full and on time or you go over your credit limit.

  • Is there a maximum/minimum amount the interest rates go up/down?

    The Bank of England controls how much the Base Rate goes up or down. We are creating a direct link between your interest rates and the Base Rate. We will always communicate the change, and you have the option to close your account.

    The one exception to this is that if the Bank of England Base Rate falls below 0%, the rate will be floored at 0%.

  • How will you let me know if the Bank of England Base Rate changes?

    We will let you know on the next statement you get from us after the rate has changed. You will get a statement from us (either by post or online) each month that there is any movement on your account. If you would like to view past statements and details of your interest rates, simply log in or register for online account services.

    If your contact details are not up to date, please let us know. If you have registered for online services, you can do this by logging into your online account servicing and updating them there.

  • Will you always pass on the rate increase/decrease?

    We are creating a direct link between your interest rates and the Bank of England Base Rate so that the interest rates you pay will always move in line with any changes to the Bank Rate. We will let you know your new rate on the next statement you get following any change. The exception to this is that we will not reflect any change to Bank Rate if it falls below 0%.

  • Will you make additional interest rate changes as well as those to reflect changes in Bank of England Base Rate?

    We can still make changes to your interest rates for other reasons as we do already. Changes in your interest rates (which can increase or decrease) can be, for example, because there has been a change in your circumstances. Other reasons are set out in your agreement. See “Can we change the cost of borrowing and other terms?”

  • Will all the interest rates I pay move in line with Bank of England Base Rate?

    Any promotional rates you have (including instalments) will not be affected by any Bank Rate changes. These rates will stay the same for the length of the promotional period or instalment plan as long as you continue to make on your payments on time and don't go over your credit limit.

  • Do I still get my interest free period?

    Any promotional or Purchase Plan rates you have will not be affected by any Bank of England Base Rate changes. Only the standard and cash interest rates will move in line with the Bank of England Base Rate.

    Your promotional and Purchase Plan rates will remain the same for the amount of time you agreed with us, as long as you continue to pay your balance on time and don't go over your credit limit.