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
October 2021 0.10% 0.10%

APR

Please note that Step One Finance does not charge up-front fees for any loan enquiries or applications. You should be wary of any parties purporting to arrange a Step One Finance loan who are seeking to charge up-front fees. Please contact us if you have any doubts regarding a Step One Finance loan application. Customers can also obtain additional information on the FCA’s website on the dangers of Loan Fee Fraud by clicking here.

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.

IF YOU ARE THINKING OF CONSOLIDATING EXISTING BORROWING YOU SHOULD BE AWARE THAT IF YOU ARE EXTENDING THE TERM OF THE DEBT YOU MAY BE INCREASING THE TOTAL AMOUNT YOU NEED TO REPAY.

CTA

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