Find out which banks have acted quickly…
The Bank of England has reduced its base rate from 5.25% to 5%, marking the first rate cut since March 2020. This reduction is expected to bring relief to many borrowers, particularly those with tracker mortgages, which are directly linked to the base rate.
Several major banks have announced plans to adjust their mortgage rates in response. Barclays will lower its tracker and variable rate mortgages by 0.25 percentage points, effective from September 1. Clydesdale and Yorkshire Bank will also reduce its residential standard variable rate (SVR) by 0.25 percentage points to 8.99%, with the new rates applying from August 15 for new customers and from August 22 for existing customers.
Coventry Building Society will cut its tracker and variable rate mortgages by 0.25 percentage points, starting September 1. Halifax will implement a 0.25 percentage point reduction in its tracker rates and decrease its SVR and homeowner variable rates to 8.49% from September 1.
HSBC is reducing its tracker rates by 0.25 percentage points immediately, but will not adjust its SVR. Lloyds Bank is cutting its tracker rate by 0.25 percentage points and will lower its SVR deals, with the homeowner variable rate decreasing to 8.49% and the SVR to 7.00%, effective September 1. Metro Bank is also reducing its tracker rate by 0.25 percentage points.
Nationwide will reduce its tracker and variable rate mortgages by 0.25 percentage points from September 1, bringing its SVR down to 7.74%. Santander, the first major lender to announce a cut, will lower its SVR by 0.25 percentage points to 7.25% and reduce its tracker mortgage products by the same amount, with changes taking effect from September 3.
Virgin Money is cutting its residential SVR by 0.25 percentage points to 8.99% and its loyalty rate to 8.74% for qualifying customers who have held a Virgin Money mortgage on the same property for seven years or more. These changes will be effective from September 1 for existing customers and from August 22 for new customers.
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