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RATE CHANGE 
INFORMATION

Bank of England Base Rate decrease 19 March 2020

On the 11 March the Bank of England reduced the Bank Rate from 0.75% to 0.25%. On 19 March they made a further decrease of 0.15%. This means the Bank Rate is now 0.1%. Where it has been possible to do so this new rate will be effective from 1st of April 2020.

It has also recently been decided to change the Standard Variable Rate. This will decrease by 0.65% and in most cases will also become effective from 1st of April 2020.

We will shortly be writing to all Rosolite Mortgages customers affected by either of these changes with details of their new monthly payment.

If your mortgage is still on a fixed rate then this will be unaffected by the recent changes. However, we will continue to monitor any changes required and will write to you if the rate of interest applicable to your mortgage changes.

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.

Frequently Asked Questions

Why is my interest rate changing?

Following the Bank of England’s decision to decrease the base rate to 0.1%, we have decreased our Bank of England Tracker rate mortgage and loan interest rates.

If your mortgage tracks our Standard Variable Rate (SVR) then the specific reasons for which we may vary this rate are noted in your Mortgage Terms and Conditions.

What will my new interest rate and monthly payment be?

We will write to you before any change is made to your mortgage interest rate to confirm the specific impact on your monthly payment. There is no need for you to do anything before this letter arrives.

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

 

I have already received a letter about the March rate change, is it still correct?

Following the Bank of England’s decision to decrease interest rates by 0.5% on 11 March 2020, you may have already received a letter about your new mortgage payment. After the second decrease of 0.15% on 19 March 2020, we will be writing to you again to inform you of your new revised payment.

This letter will confirm both the date when the new interest rate will apply and the specific impact on your monthly payment. Until we send this letter to you, there is no need for you to take any action.

 

How can I make my monthly payment?

There are a number of ways you can make your monthly mortgage payment, please see here for more information.

If you make your monthly payment by Direct Debit, will automatically collect the new total monthly payment amount. We will confirm the new amount and the date that it will be collected when we write to you.

If you think you may struggle to make your payment for any reason, then please contact us as soon as possible and we will do what we can to support you.

 

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.

We will write to you ahead of any change to your interest rate or monthly payment. The letter will confirm both the date when the new interest rate will apply and the specific impact on your monthly payment. Until we send a letter to you, there is no need to take any action.

 

What if I am struggling to afford my monthly payments?

If you are worried about making your monthly mortgage or loan payments, you should contact 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 here 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.

 

What if my account is already in arrears and I am behind with my payments?

This depends on the method you use to make your payments and whether you are currently repaying your arrears with an additional amount each month as part of an agreed payment arrangement.
If you do not pay by Direct Debit, you need to arrange to change the amount you pay.

If you are unsure what to do, or think you may struggle to meet either your regular monthly payment or the additional arrangement amount, then please contact us immediately so we can try to help you. We will always take your personal circumstances into account and treat you with fairness.

 

Why might my new monthly payment be different to what I expect?

There are a number of factors that can affect your monthly payment when an interest rate change occurs, so your new monthly payment amount may differ from your own calculations.

Unless you have recently asked us to recalculate your monthly payment, the amount due may change 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 increased monthly payments for any reason;
  • missed any monthly payments for any reason.

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

 

What if I’m making overpayments?

Every overpayment reduces the outstanding balance on your mortgage or loan (dependent on how the overpayment has been applied) but does not alter the remaining term. Your new monthly payment will be calculated by applying the new interest rate to the lower balance over the existing, remaining mortgage term.

If you are comfortable with the new total monthly payment amount quoted in your letter, then you do not need to contact us and you can simply continue to overpay by the same amount as you were before the interest rate change. If you wish to change the amount of your overpayment, please contact us.

What if I’m in the process of making changes to my mortgage or loan?

There are a number of changes you can make to your mortgage that are unaffected by this rate change, such as 'Power of Attorney'. If you are in the process of making such changes, you do not need to take any action as a result of the rate change.

However, if you are redeeming (closing) your account, you should ensure that you make the monthly payments quoted in the letter we will send to you until your account with us is fully repaid. Similarly, if you have recently requested a redemption statement, you should bear in mind that any figures quoted may now need to be recalculated following the interest rate change. Please contact us if you need to request a new redemption statement.

Also, if you have received a recent Change of Parties or Porting offer, we will provide a revised mortgage illustration.

 

If you are worried about affording your mortgage each month, please call us as soon as possible.


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