Experts say rates will continue to trend downward
Santander UK has announced adjustments to its mortgage products following the Bank of England’s decision to reduce the base rate by 0.25 percentage points to 4.75%.
Starting December 3, Santander’s tracker mortgage products linked to the base rate will decrease by 0.25%. This includes the Santander Follow-on Rate, which will drop from 8.25% to 8.00%. Additionally, the Santander Standard Variable Rate (SVR) will decrease from 7.25% to 7.00%.
The Bank of England’s Monetary Policy Committee voted 8–1 in favour of the cut, following an earlier reduction in August that marked the first rate cut since 2020. The base rate was held steady in September before being lowered again this month.
According to UK Finance, the latest cut means that homeowners with tracker mortgages will see their monthly payments fall by an average of £28.98, while those on standard variable rate mortgages will save approximately £17.17 per month.
“We’ve already seen mortgage rates trending downwards in recent months due to a higher degree of mortgage market stability,” commented Stephanie Daley, director of partnerships at mortgage advisor Alexander Hall. “Many within the mortgage sector will have already been anticipating Thursday’s base rate cut.
“The latest BoE rate cut will bring further confidence to those looking to move, many of whom had previously delayed their plans due to higher rates, and this release of pent-up demand will help to cultivate further property market positivity.”
“The mortgage market has really opened up since the Bank of England announced its first cut in August, with borrowers finding dynamic and cheaper products in front of them,” added Kevin Roberts, managing director at Legal & General Mortgage Services. “And while there’s recently been some uncertainty tied to the Autumn Budget and US election, yesterday’s decision should reassure borrowers that rates are on a downward trend.”
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