Our frequently asked questions

Our frequently asked questions



Looking ahead – changes to LIBOR

The interest rate linked to some of our customers’ mortgages is currently calculated with reference to the London Interbank Offered Rate (LIBOR), which is due to cease in its current format after 31 December 2021. Thereafter, we currently anticipate switching all our mortgages to track the Bank of England Base Rate (BBR) as the alternative reference rate.  Should regulatory guidance change prior to the cessation of LIBOR in such a way to make it inappropriate to use BBR as the alternative reference rate, another alternative reference rate may be used.

We will continue to keep you informed:

  • if BBR is confirmed as the alternative reference rate your mortgage will be linked to in replacement of LIBOR, or
  • in the event regulatory guidance changes, of details of the alternative reference rate your mortgage will be linked to going forward to replace LIBOR, and
  • on how this change will impact your mortgage.

Since May 2020, all new Foundation Home Loans products, including Product Transfer products, have been based on or revert to an interest rate which refers to Bank Base Rate (BBR).


  • What is LIBOR?
  • Why do lenders have to move customers away from LIBOR rates?
  • What does this mean for me (the borrowers)?
  • How do I know if my mortgage currently references LIBOR?
  • What if I am on a fixed rate?
  • Does this affect new mortgage applications?
  • Where can I find more information?