Will my new rate be higher or lower than the existing rate?

We are currently exploring all reasonable alternatives to LIBOR as the basis for calculating interest rates. As is the case with your existing rate, there will be reasons why your new rate may change; for example because of market or economic conditions. We will explain the reasons why your new rate may change closer to the time when the new rate is due to take effect.

Why is this happening?

The regulators of the UK financial services industry will no longer be requiring banks to contribute the data currently used to calculate LIBOR. With this in mind, we expect LIBOR to cease completely at some point during 2021.

Am I able to tell you which rate I would like you to use?

No – we will reach our decision based on a variety of factors including the interests of our customers and the expectations of our regulators. This is a complex decision which requires a thorough assessment on our part.

Do all of the other terms and conditions of my loan remain the same?

Some other changes may be required to accommodate any changes to the way interest is calculated and paid, although these are not known at this time. We will of course tell you in good time before any new terms take effect.

When will you make this change?

We will inform you of the new rate as soon as we can, expected to be in early 2020 – the changes are not expected to be made for existing customers until 2021.

Do I need to do anything?

No - we will contact you again to provide all the information you will need and to confirm whether there are any actions you will need to take.

Will I need to complete any more paperwork?

We don’t know yet, but we will ensure any action required by our customers is kept to an absolute minimum.

Do I have to agree to the new rate?

We anticipate that, as now, you can repay your outstanding loan in line with the existing terms and conditions of your facility. We will contact you again nearer the time to outline your options.

Where can I find out more?

There are multiple external sources of information which you may find useful, including the following:

You should also consider whether you wish to seek further guidance and independent advice from your professional advisors on the potential implications of this change including in relation to your financial, legal, accountancy or tax matters.