On 03 August 2023, the Bank of England announced a change in the Bank of England Base Rate from 5% to 5.25%.

Base rate calculator

If there is a change to the Bank of England Rate, then use this calculator to understand how your monthly payments could change.

Base rate calculator Base rate calculator
  • 1.
    What is the Bank of England Base Rate?

    It is the interest rate set by the Bank of England and is also known as the ‘official Bank Rate’. It affects the interest rates offered by Banks, Building Societies and other financial institutions. By changing the Base Rate, the Bank of England seeks to influence overall borrowing in the economy.

    The Bank of England can increase or decrease the Base Rate. The current rate can be found on the Bank of England’s website

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  • 2.
    How will I know if my interest rates are linked to the Bank of England Base Rate?

    Your account terms and conditions explain whether your standard interest rates are linked to the Base Rate. Your standard interest rates can also be found in your monthly statement and account terms and conditions.

    If we need to change your interest rates in the future for other reasons, as we do now we’ll write to let you know beforehand and explain what your options are. We’ll also do this if we decide to relink your account to the Bank of England Base Rate in the future.

    You may also contact customer services on 03456 062 062 for information around your interest rates or other aspects of your account. Lines are open 8am – 8pm, seven days a week.
    Not all Telephone Banking services are available 24 hours a day, seven days a week.

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  • 3.
    Why are my standard interest rates linked to the Bank of England Base Rate?

    The Base Rate set by the Bank of England affects our costs of lending. It is therefore one of the things we consider when setting interest rates on our credit cards.

    If your rates are linked to Base Rate and the Bank of England changes the Base Rate, your standard interest rates will change. It’s a simple and fair way to reflect the change in our costs.

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  • 4.
    How often can the Base Rate change?

    The Base Rate is reviewed regularly by the Bank of England, and may stay the same for long periods of time. 

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  • 5.
    How will a change in the Bank of England Base Rate affect me?

    If your rates are linked to Base Rate and the Bank of England changes the Base Rate, your standard interest rates will increase or decrease in line with this change. The change to your rates will be effective from the next working day after the Bank of England announcement is made.

    Changes to your monthly payments will be effective from the next statement after the change in the Base Rate. Your monthly statement will always show you how much you need to pay and by when.

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  • 6.
    How will I know when the Bank of England Base Rate is changing?

    Any change in the Base Rate will be widely communicated in the media. It will also be announced at Bank of England.

    If your standard rates change due to a change in Base Rate, you’ll be able to see your new rates on your next statement after the announcement of the Base Rate change. If we’re not sending regular statements when a Base Rate change happens, for example if you’ve not been using your account, you’ll see your new interest rates when we next send you a statement. This will be your next annual statement, or if it’s sooner, after you start using the account again and when you next get a monthly statement. 

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  • 7.
    Will the changes have any impact on my promotional rate balances?

    No. Any promotional or non-standard rates you have on your account will not change and will continue until the end of the promotional offer.

    Your new standard interest rates (taking into account Base Rate changes) will only apply once your promotional offer ends. 

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  • 8.
    If I don’t want my account linked to the Bank of England Base Rate what are my options?

    You will need to close your account. Interest will continue to apply to your balance at the existing rates, and you’ll need to continue to make at least the minimum payment every month until the balance is completely cleared. You will not be able to carry on using your card.

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  • 9.
    I’m currently on a payment plan due to my financial circumstances. Will a change to Base Rate impact my payment plan?

    If your interest is currently waived as part of your payment plan, this won’t change. If the Base Rate increases or decreases, you’ll see on your statement how this impacts your standard interest rates but this won’t impact your account until your payment plan comes to an end. Please keep making any plan payments we’ve agreed with you.

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  • 10.
    What happens if the Base Rate goes below 0%?

    Your standard interest rates will not track any movements in the Base Rate below 0%. This is detailed in your credit card terms and conditions.

    For example, if Base Rate is reduced from 0.25% to -0.25%, your standard simple interest rates will reduce by 0.25% only.

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  • 11.
    Are there other reasons why my interest rates may change?

    Yes. We may change your standard interest rates in the future for reasons set out in your account terms and conditions. If we increase your rates we’ll write to you at least 60 days before to tell you why. If we decrease your rates we will write to you at least seven days before to tell you.

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  • 12.
    How can I help avoid increases to my standard interest rates for reasons other than Base Rate?
    • Keeping to the conditions of your credit card or any other product you have with us (‘us’ includes Halifax and other brands within Lloyds Banking Group). For example, don’t miss payments, go over your credit limit, or make payments that bounce.
    • Keep an eye on your financial status. If we receive information about you from external credit reference agencies we may change your rates. Your credit rating may be impacted by regularly using the entire credit limit or exceeding the credit limit on your credit card, not making payments on time to other creditors such as credit cards, mortgages, loans or current accounts  or regularly using a credit card to make cash transactions.
    • We may increase your rates for other reasons - so even if you stick to the terms of your agreement and keep an eye on your financial status, this does not guarantee that your rates will remain the same.
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