Why hasn’t the monthly repayment on my lifetime/offset tracker mortgage reduced in line with the Bank of England Base Rate?

The interest rate on many of our tracker mortgages is linked to the Barclays Bank Base Rate (BBBR).

This is a variable rate set by Barclays Bank PLC, which typically follows the Bank of England Base Rate, but is not guaranteed to do so. Any change in the BBBR will be applied to your interest rate on the first day of the following month.

However, whether this affects your monthly repayments will depend on what type of mortgage you have. If you have an interest-only mortgage, your monthly repayments will change the month after any base rate change.

If you have a repayment mortgage, your monthly repayments will stay the same until your annual review date. The interest rate will be applied on the first day of the month following the change, and if the base rate reduces, then more of the monthly repayment will go towards reducing your balance.