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<p>It is not SMI policy to increase the level of SMI payments in line with increases
in the Bank of England’s base rate.</p><p> </p><p>The standard interest rate we pay
is set at a level based on the Bank of England's published monthly average mortgage
interest rate. We have selected this rate because it is the average interest rate
that applies to outstanding mortgages, including fixed and variable mortgages. The
Bank of England data is the most reliable as it is based on information that covers
over 75 per cent of all banks and building societies' mortgage business. It is also
updated on a regular (monthly) basis</p><p> </p><p>The standard interest rate is currently
set at 2.09% and will only change when the Bank of England’s average mortgage rate
differs by 0.5 percentage points or more from the rate in payment.</p>
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