Rate change information - Morag

Rate change information

 

We’ll always write to you at least ten working days before your interest rate changes. The letter we send you will tell you about your new rate and when your monthly payment will change, and you won’t need to do anything until you receive our letter.

There’s more information below about what happens when your interest rate changes.

Rate rise calculator

See how an interest rate rise could affect your monthly mortgage payments.

Rates have changed several times in recent years, so planning now can help you prepare for any future increases in your payments.

Using this tool

You’ll need to know your outstanding balance, type of mortgage (interest only or repayment), current interest rate and how long is left on your mortgage.

Find out how to quickly see up to date information about your mortgage account

If your mortgage is made up of multiple sub-accounts you can enter details for each part separately.

Understanding the results

Our calculator shows the increase in monthly payments, for a repayment or interest only mortgage, at a range of different interest rates.

The results you’ll see are based on the information you have entered for your current balance, interest rate and remaining term.

Our calculator uses a simple method to determine the amount of interest you’ll pay as part of your monthly payment, by dividing the total amount of interest you’ll pay over a full year into 12 equal monthly amounts.

Since interest on your mortgage may be calculated differently (such as on a daily basis), then the actual change in your monthly mortgage payments after an interest rate increase may differ slightly to the figures shown in the calculator.

This means the results should only be used as a guide.

Use calculator

When is an interest rate change triggered?

The events that trigger a change in your interest rate depend upon the type of variable interest rate that you have.

The London Interbank Offered Rate (LIBOR) is no longer being published. We wrote to you in 2021 to explain how your account would be affected, and you can find more information about the end of LIBOR on our website here.

The end of LIBOR means that the reference rate used to set your interest rate has changed or will change later this year. However, your interest rate will continue to be reviewed once every three months.

We’ll always write to you before any change in the interest rate that applies to your mortgage or your monthly payment takes effect.

If your interest rate has a Product Variable Rate (PVR) or tracks Bank of England base rate (BBR), your rate will usually change at the start of the month after the Bank of England announces a change in BBR.

We won’t be able to tell you what your new monthly payment will be if you call us immediately after a change in BBR has been announced. This is because the rate change needs to be applied to your account and your recalculated payment updated.

You’ll be able to check any change in your monthly payment by signing into Self-Serve. After the change has been applied to your account there’ll be a message about your new payment amount on the account summary screen. Find out more here.

We’ll also write to you before any change in your monthly payment takes effect.

The most recent change in BBR to its current 5.25% was announced on 3 August 2023. We wrote to you in late August to confirm your new rate and when your monthly payment would change. That rate will continue to apply until after any further change to BBR is announced.

The SVR is set in response to trends in the UK mortgage market. The SVR isn’t directly linked to any external reference rate, this means that it doesn’t automatically change if for example, the Bank of England changes Base Rate.

Although the SVR is regularly reviewed, there aren’t any fixed dates on which it will change. We’ll always write to you before any change in your rate takes effect. If your account is linked to SVR, your rate will usually change at the start of the month after the change to the SVR is announced.

We won’t be able to tell you what your new monthly payment will be if you call us immediately after a change in SVR has been announced. This is because the rate change needs to be applied to your account and your recalculated payment updated.

You can see your current interest rate, monthly payment amount and details of future changes by signing in to Self-Serve. After the change to your account has been applied there’ll be a message about your new payment amount on the account summary screen. Find out more here.

More information about your account and interest rate changes

Please read the answers to the questions below before you call us with a question about your account.

Unfortunately, Morag Finance is closed to new business and unable to offer any new deals to customers.

There’s more information about remortgaging with another lender on our Find a better mortgage deal page.

Unfortunately, we can’t freeze your interest rate. However, there may be options available to you if you’re struggling to afford your monthly payments. If you’re worried about making your payments, please take a look at the information about how we may be able to help on our Payment difficulties page.

If you’re worried about making your monthly mortgage payments now or in the future there’s more information about how we may be able to help you on our Payment Difficulties page.

There’s also details of independent organisations that can help by offering you free support and advice. Simply contacting us, or any of those organisations won’t affect your credit score.

You can also find out about using PayPlan’s BudgetSmart tool to look at what you may be struggling to afford and use the tools and tips provided to help you cut costs. It has information and tips covering car and home insurance, food, clothes and shoes, utility bills and much more.

If you’re paying an extra amount on top of your normal monthly payment as part of an agreement to clear or reduce your arrears, it’s important to continue paying that extra amount. But if your monthly payment has increased and you’re struggling to keep up the arrangement we’ll need to reassess your situation.

There’s more information on our Payment difficulties page about how you can start that process by going online to provide us with updated income and expenditure details. You can also call us. You may find it useful to have your bank statements, wage slips and utility bills to hand.

When you’re making regular monthly overpayments, it’s a good idea to check you’re happy with the amount you’re overpaying after an interest rate change. Depending upon how your overpayment is set up and whether your normal monthly payment has gone up or down, you may want to check and adjust the amount you’re overpaying. There’s more information about making regular monthly overpayments on our Overpayments page.

If you make your monthly payments by Direct Debit you don’t need to take any action, we’ll collect the new payment amount when this is due.

If you don’t pay by Direct Debit, you’ll need to adjust the amount you pay. There’s more information about alternative payment methods on our Making your monthly payments page.

Your original mortgage offer documents will have explained the type of interest rate applying to your mortgage. There’s more information about interest rate types on our Your interest rate page.

Don’t worry, we’ll always write to you before we change any variable interest rate.

If our letter doesn’t explain your type of interest rate or you can’t find your mortgage offer documents, you’ll need to call us if you need to find out your type of interest rate.

Sign in to Self-Serve to check your interest rate

You can find out your interest rate and account balance using our online Self-Serve system.

Sign in now – if you’ve already registered on Self-Serve, you can sign in to your account at any time, from any device.

Register now – to use Self-Serve for the first time, you’ll need to register and create your secure account.

For more details, please see our Self-Serve section.

Other information on our website that might be useful

Useful tools & calculators

Our useful tools and calculators include a handy rate rise calculator.

Payment difficulties

How to get help and support if you’re struggling to make your mortgage payments.

Making overpayments

Information about the ways you can make overpayments.

Your interest rate

Find out about different types of interest rates.

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