Solving Mortgage Preferential Rate For Tracker Mortgages

This article will explain exactly how we can calculate the full mortgage preferential rate for a tracker mortgage to solve a record that is in Load Approval 🌟.

You may have seen this message show up in some of your records currently in Load Approval 🤔.

The full mortgage preferential rate (%) is simply looking for the "rate of the product from the bank (margin) + bank of England base rate" at the time the mortgage completed 🏛️.

• For example, lets take a product completed on 12/04/2023 and the bank has offered a rate of 0.8% above base rate.
• You would then need to find the Bank of England base rate on 12/04/2023 by following this link here: https://www.bankofengland.co.uk/boeapps/database/Bank-Rate.asp
• This rate, in this example, is 4.25. You would then add the product rate (also known as margin) of 0.8% to the BOE base rate which is 4.25 and this would give a total of 5.05%.
• Therefore the full mortgage preferential rate (%) is 5.05% and this is what you would input in to the mortgage preferential rate field for the deal in question to go in to the Eligible system ☑️.

Why is this based off of the start date?

This is the point in time that we use to check the BOE base rate to make sure that Tracker mortgages display the correct information to your clients.

Why are we seeing this issue so much?

The base rate has changed ten times in the last year and this means that the time at which the mortgage was offered VS completed the base rate could have changed multiple times within this window.