Step One Base Rate (“SOBR”)
Step One introduced the Step One Base Rate (“SOBR”) in late October 2021 to provide greater transparency to our customers around rate changes in our variable interest rate products and to better match the cost structure of our funding.
Step One expects that the SOBR will typically follow the Bank of England Base Rate – but it is not guaranteed to do so. The SOBR has a minimum rate of 0.00%.
Step One may change the SOBR at any time to respond proportionately to a change in any one or more of the following: (a) the published Bank of England Base Rate; or (b) any increase in the cost of running our business, for example costs related to changes in regulation or from any other governmental authority.
For the avoidance of doubt, any change to the SOBR will not affect your loan margin. The loan margin will stay the same and will be added to any changes in the SOBR when calculating your total rate of interest. If your loan does not have a specified loan margin your variable rate of interest will change proportionately with any change in the SOBR. What this means is that if the SOBR increases by 0.10% then your variable rate of interest will increase by the same amount. If the SOBR were to decrease by 0.10% then your rate would decrease by the same amount.
If your loan is in a Fixed Rate Period your rate of interest will not change during this period but after the Fixed Rate Period ends, the rate of interest will be the SOBR plus your loan margin (or if your loan does not have a specified loan margin your original variable rate adjusted proportionately for any change in the SOBR).
Any changes in the SOBR will be published on the Step One website www.steponefinance.co.uk. Any change to your total rate of interest will be notified to you in writing as set out in your Loan Terms and Conditions.
Interest is charged on the loan on a daily basis. If the rate of interest is varied, we may need to change your monthly payment amount. Please refer to your loan documentation for complete details or contact our customer service team with any questions at 01483 661 100.
| Effective Date | Step One Base Rate | Bank of England Base Rate |
|---|---|---|
| 11 November 2024 | 4.75% | 4.75% |
| 05 August 2024 | 5.00% | 5.00% |
| 03 August 2023 | 5.25% | 5.25% |
| 22 June 2023 | 5.00% | 5.00% |
| 12 May 2023 | 4.50% | 4.50% |
| 27 March 2023 | 4.25% | 4.25% |
| 02 February 2023 | 4.00% | 4.00% |
| 15 December 2022 | 3.50% | 3.50% |
| 10 November 2022 | 3.00% | 3.00% |
| 23 September 2022 | 2.25% | 2.25% |
| 10 August 2022 | 1.75% | 1.75% |
| 21 June 2022 | 1.25% | 1.25% |
| 16 May 2022 | 1.00% | 1.00% |
| 22 March 2022 | 0.75% | 0.75% |
| 3 February 2022 | 0.50% | 0.50% |
| 16 December 2021 | 0.25% | 0.25% |
| 1 November 2021 | 0.10% | 0.10% |