The rate of interest used as the basis for the interest charged by the banks on much of their variable rate lending. The variable rate is quoted as a percentage margin over base rate. Alternatives include LIBOR.
The interest rate set by the Bank of England.
This generally refers to the Bank of England base rate. Some mortgage schemes are linked to this base rate so when the rates move up or down the scheme rate follows. This type of scheme is often referred to as a tracker mortgage.
The bank base rate is set by the Bank of England and determines the cost of borrowing money. This base rate is used by commercial banks as a reference point when setting their own base rates. An increase in the base rate will increase the rates for mortgages and loans. However, savers will receive higher interest rates on their savings.
The minimum interest rate that the bank will charge you for your loan.