Santander UK increases credit card standard interest rates

Santander UK has told some credit card customers that their standard interest rate is increasing, with the new rate applying from July 2025¹. The bank says the change reflects "the increased cost of providing your credit card"¹. The increase applies to customers the bank has notified directly by email or letter¹.

The bank says the change applies to all the money owed on the card, not just new spending. "When there's an interest rate change on your credit card, it applies to all of the money you owe on it," its guidance states, though balances on a 0% promotional rate are excluded until the promotional period ends¹. Customers who do not clear their balance in full each month will pay more interest each month, and Santander says the monthly minimum payment is likely to increase¹. Balances on a 0% promotional offer are unaffected for now; interest will be charged at the new rate on whatever is left when the promotional period ends¹.

Customers who have been notified can decline the new rate within 60 days of the date on their email or letter¹. Those who do can repay the balance over time under their existing terms at the existing interest rate, but the card is blocked for further transactions, regular payments and subscriptions on it must be cancelled, and any additional cards on the account are also blocked¹. The account closes automatically once the outstanding balance is cleared¹. Santander says the balance does not have to be repaid immediately and minimum payments must still be made, with Direct Debits continuing to collect them¹.

The bank lists three ways to decline: the chat service in online or mobile banking, its call centre on 0330 9 123 123, or a branch visit¹. It also offers a separate line, 0800 389 6655, open Monday to Friday 8am to 6pm and Saturday 9am to 5pm, for customers with money worries¹.

Santander has not published the specific new rates, the previous rates, or the number of customers affected on the page setting out the change¹. The bank notes it charges different rates depending on how a card is used, including purchases, cash withdrawals, balance transfers and promotional offers, with the rates for each card listed in its Summary Box¹.

Why it matters for households

For anyone who has received a letter or email about the increase, the cost of carrying a balance on the card rises from July 2025, and the minimum payment is likely to go up too¹. The 60-day clock runs from the date on the notification, not from July, so the deadline differs by customer¹. Declining the rate keeps the existing rate on the outstanding balance but ends the ability to spend on the card, and the account closes once the balance reaches zero¹. Customers on a 0% promotional rate see no immediate change, but the new standard rate will apply to any remaining balance when the promotion ends¹. Santander says it will send a separate notification before a promotional rate ends, giving the end date and the rate that follows¹.

What happens next

The new standard rate applies from July 2025 for customers who have been told their rate is increasing¹. Those customers have 60 days from the date of their email or letter to tell Santander they do not accept the new rate¹. Santander has not reported a closing date for the repricing exercise or the rates that will apply to customers who accept the change¹.