Interest rates – Understand interest rates | Royal Bank of Scotland

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Understanding Interest Rates

Your home may be repossessed if you do
not keep up repayments on your mortgage

Bank of England Base Rate

What is the Bank of England Base Rate and who sets it?


The Bank of England (BoE) is the central bank of the UK. Base Rate is an interest rate set by the Bank of England’s Monetary Policy Committee. The Bank of England Base Rate is one of the most important interest rates because it tends to influence all the other interest rates, such as those set by banks, including mortgage, loan and savings rates and rates for businesses.

How could it affect you?


If the Bank of England Base Rate changes, your monthly payment may be affected if you are on a Tracker, Flexible (Offset) or Variable rate mortgage. If you are on a Fixed rate your monthly mortgage payment will not be affected by any change to the Bank of England Base Rate for ther period of time your fixed rate mortgage is in place.

Learn more about interest rates
Interest rate changes

Interest rate changes

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Have a mortgage with Royal Bank?

It’s important to understand how interest rate changes could affect you.

See our step by step guide as to what action you can take now with you existing mortgage.

Read our mortgage guide
Tools to help you plan

We have a range of tools designed to help you prepare for interest rate changes.

Our Rate Change Calculator could help you, if you’re concerned about mortgage interest rates. 

The Budget Calculator will help you to work out how much money you have each month, after all your outgoings, and the Overdraft Calculator can show you how you might save money with an Arranged Overdraft.

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