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Mortgage interest rates decrease example letter

Updated on August 16, 2009

Below is another sample letter received from the lender when mortgage interest rates changed (were reduced). It's very well written and simple to understand. Note the careful wording when the sender is talking about insurance issues. Also note that they don't actually state the interest rate - the omission is intentional and is meant to give them room to manoeuvre to avoid misunderstandings. Please as always please note that all names and companies featured in these sample letters should be considered fictitious.


Dear Mr/Mrs J

Re: Property Address: 364 Newport Street Drive, Downing, UK

We're writing to you following the Bank of England's decision on 8 January 2009 to decrease the Base Rate. We'll be reducing our interest rates on 1st February 2009, and so you'll receive the benefit of the reduced rate from this date. We want to keep you informed of how these changes will affect you as outlined below.

Your monthly repayment will change to £120.00 and will be collected from 03 April 2009.

We want to make sure we give you enough time to change your payment. To do so, we have to give you sufficient written notice whether the rate increases or decreases. This means if your payment is due after the 9th day of any month your payment will change the month following the interest rate change being applied. If your payment falls due between the 1st and 9th day of any month the revised repayment will be applied two months following this date. However I can assure you, you'll not be financially disadvantaged by the delay in collecting the revised payments as the interest rate is decreasing; any additional amount collected will reduce your balance.

If you've arranged to pay a different amount with us, we'll continue to collect this.

What happens next?

We'll take care of all your direct debit payments for you. If you pay your mortgage by standing order, we've enclosed a standing order form for you to complete and return to your bank.

If you have an Accident and Unemployment Policy, such as Mortgage Repayment Cover or Home Insurance remember to review your benefit amount, as your payments will have changed.

We want to provide you with the best service and realise that you may have some questions about the rate changes, so we've answered some key questions for you on the reverse of this letter. We've also included some helpful telephone numbers.

Yours Sincerely,


Sender's Name
Operations Leader
Mortgage Administration Teams

Our tracker rate mortgages are linked to Bank of England’s base rate (also known as Bank of England repo rate). Details of this rate can be found on the Bank of England web site or in the Financial Times or other leading newspapers.


More credit letter samples are available from the credit letters website. To learn how to write effective letters click here

Mortgage interest rate change letter
Mortgage interest rate change letter


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      Mark 4 years ago

      I had car accident (it wasn't my fault, it was parekd when another car run into it). Few days after I've received a letter from my isurance company saying: Please contact us to confirm how the details of the other party were optained? . Also they are asking me if I was a witness of the accident or did a witness provide me with information. I don't know what exactly they are asking about? Dothey want to know how I get details of the other driver or are they asking about the company that have my car now to repair it?