Bank Of England Base Rate Explained

Our Privacy Policy

This notice is being provided to you because we are just about to collect personal data from you. It is issued by New Mortgage Finance Limited, trading as NM Finance. It explains how we use your personal data.

Lawful conditions for processing personal data

We will only process your personal data when we meet one of the following lawful conditions:

When we have a lawful contract with you;
When it is our legal duty;
When we have a legitimate interest;
If we need to act in your vital interests; or
When you have provided us consent to process it.

If we process your personal data that has been obtained from someone other than you, we will let you know without undue delay.

Who is collecting your personal information

NM Finance, Portal House, 7b Alkmaar Way, Norwich International Business Park, Norwich, NR6 6BF. The point of contact for all personal data related queries is the Data Privacy Manager.

Why we collect your personal information

We collect personal information provided by you to enable us to create a contract with you which we then fulfil in accordance with the terms and conditions of the contract and our Data Protection Policy. We also need to collect your personal information to meet the legal & compliance obligations placed upon us.

Your information may also be used for other specific purposes but only after you have given your consent, for example, to receive newsletters.

Automated decision

When obtaining a Decision in Principle (DIP), also referred to as an Agreement in Principle (AIP), we submit your information via the Lender’s online automated decision-making process. We do not use any in-house automated processing mechanisms.

Who we may share your information with

We share your personal data with the appropriate:

Credit reference agencies;
- NM Finance conduct credit checks through TransUnion (formerly Callcredit), for further information about TransUnion and the information it holds click the link below:
  https://www.callcredit.co.uk/legal-information/bureau-privacy-notice
Fraud prevention agencies;
UK regulators and other legal authorities; and/or
Appointees who are instructed to act on your behalf, for example a solicitor.

We will never sell or share your information with marketing companies.

Security of your personal information

We take all reasonable technical and procedural precautions to prevent the loss, misuse or alteration of your personal information. All business data is stored off-site on a server at a secure location and managed by a trusted third-party contractor. NM Finance Ltd do not operate internationally; our business services are limited to the United Kingdom.

Retention of your personal information

We will retain your information for as long as it is needed to provide you with our services and manage our relationship and also to comply with our legal obligations, resolve disputes and enforce our agreements. In practice this could be throughout your lifetime, but this does not prejudice your right to request that your personal data is no longer processed by us (The Right to Object).

Your Rights

The GDPR extends your rights in respect of your personal data. It should be noted that these are qualified in so much that they do not necessarily apply in all situations. The ‘rights’ are listed below.

- Right to be informed;
- The right to access;
- Right to rectification;
- Right to erasure;
- Right to restrict processing;
- Right to data portability;
- Right to object; and
- Rights related to automated decision making.

https://ico.org.uk

Exercising your rights and access to your personal information

If you wish to exercise your right to access to your personal data, please contact the Data Privacy Manager. We will then contact you to check your identity and may request documents to prove it. For all other queries regarding our processing of your personal data and the exercising of all of your rights, please contact the Data Privacy Manager.

Your options if you have a complaint

If you do have cause for concern or a complaint regarding the way we are handling your personal data, we ask that you contact us in the first instance. This way we can resolve any issues at the earliest opportunity.

If you are still unhappy, or you do not wish to contact first you are, in any event, entitled to complain to the ICO. You may also seek judicial remedies against us or any of the third parties we interact with on your behalf, for damages (both material and non-material) arising from breaches of the GDPR. For more information please visit the ICO website using https://ico.org.uk.

What is the Bank of England Base Rate?

The Bank of England Base Rate or Interest Rate is the rate at which the Bank of England lends money to banks and other financial institutions. It is also sometimes known as the “Bank Rate”. The Base Rate is decided by the Monetary Policy Committee (MPC), which meets eight times a year. The MPC comprises nine members, headed up by the Governor of the Bank of England, Andrew Bailey, three deputy governors, the Bank’s Chief Economist and four external members appointed by the Chancellor of the Exchequer.

Why does the Bank of England Base Rate change?

The Base Rate is important because it determines the cost of borrowing for businesses and consumers. A higher Base Rate means that borrowing costs are higher (you will pay more money in interest on the cash you borrow) while a lower Base Rate means that borrowing costs are lower (you will pay less money in interest on the cash you borrow). The Base Rate also determines the interest rate on some savings accounts. The higher the base rate, the more cash you make on your savings.

What is inflation?

The MPC sets the Base Rate based on its assessment of inflation and economic growth, measured by the Consumer Price Index (CPI). Inflation is the rate at which prices for goods and services rise; the decline of purchasing power over a period of time. This can be caused by not enough products or services being produced to keep up with demand, the cost of producing products or services rising, forcing businesses to put up their prices or the workforce demanding higher salaries to deal with rises in the cost of living.

The MPC’s goal is to keep inflation at around 2%, which is considered to be healthy for the economy. If inflation is too high, the MPC will raise the Base Rate in order to bring it back down to its target level. If inflation is too low, the MPC will lower the Base Rate in order to boost economic growth.

How will changes to the Bank of England Base Rate affect me?

If you have a mortgage, a change in the base rate could mean that your monthly repayments go up or down. If you have savings, a change in the base rate could affect the interest you earn on those savings.

It’s important to keep an eye on changes to the Bank of England Base Rate and how they might impact your personal finances.