Moving from LIBOR to Shawbrook Base Rate (SBR)


This section explains our transition away from LIBOR onto SBR. This only applies to some of our customers however, so please check below to see if this applies to you.


Shawbrook Bank Base Rate 0.25%

Your Notice of Change letter will specify the date your Loan will be switched from LIBOR to SBR. Please visit the Shawbrook Base Rate page for more details on the current rate and how it is calculated.

The transition to SBR does not apply to our Business Finance customers, who will be notified separately of their new reference rate.

The UK Government passed legislation during December 2021 which means that if a Loan has not already switched from LIBOR to SBR then it must remain on LIBOR. As a result, the interest for your Loan will be calculated using ‘synthetic’ LIBOR from 2022 onwards.

Please refer to the letter sent to you in December 2021 which explains this further.



Please visit the Shawbrook Base Rate page to see what the current rate is and how it is calculated. If the interest rate on your Loan is currently variable, you may see an immediate change to your scheduled payment amount if SBR is not the same as LIBOR. We will write to you to notify you in advance if your scheduled payment amount has changed

If the interest rate on your Loan is currently fixed, your scheduled payments will remain unchanged until the fixed rate period expires, and you move onto the variable rate. At this point the interest rate on your Loan will be calculated using SBR, rather than LIBOR. During this period, your scheduled payments will only change when SBR changes.

Please visit the Shawbrook Base Rate page to see what the current rate is.

The UK financial services regulators, the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (Bank of England), require UK financial institutions to transition away from LIBOR.

BBR is a policy tool used by the Bank of England to influence the economy and is representative of what it costs banks to lend. Sometimes however, there is a disconnect between BBR and Shawbrook’s cost of funds, therefore we have developed SBR to accommodate this. We do intend however to pass on any changes that occur in BBR, as long as it is representative of changes in the bank’s market funding costs.


As a result of changing the terms of your Loan to calculate the interest using SBR we have had to make certain related changes. These are set out in the Notice of Change you received from us.

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

If you have any questions regarding any potential implications to your financial, legal, accountancy or tax matters, you should seek further guidance and independent advice from your professional advisors.

Alternatively, if you would like to discuss the possibility of switching to an alternative product with us, please contact our Sales Desk on 03301 234 521 who will be able to discuss the options available to you.