If a Product Variable Rate (PVR) applies to your mortgage it will be set at a specific level above the Bank of England (BoE) base rate of interest. The level (or margin) above the BoE base rate will be stated in your mortgage conditions. Your PVR will change to follow any movements in the BoE base rate and can therefore increase or decrease over time. The PVR will remain in place until you reach the end of your current mortgage term.
Changes to a PVR will normally take effect from the first day of the month following any BoE rate change. If you have a mortgage on a PVR we will write to you within 2 weeks of any change to the BoE base rate to inform you of the subsequent changes to your payment.
The minimum interest rate that can be charged is 0.001%.