Full list of banks that have cut mortgages after Bank of England interest rates update
The Bank of England finally cut its base rate from 5.25% to 5% - the first time there has been a reduction since March 2020 and this is good news for those with a variable mortgage
Mortgage lenders including Santander and Barclays have started to reduce their rates after the Bank of England finally announced an interest rate cut.
Yesterday, the central bank reduced its base rate from 5.25% to 5% - the first time there has been a cut since March 2020. This is welcome news for anyone with a tracker mortgage, as these deals move in line with the base rate - meaning your monthly repayments will now come down.
If you have a standard variable rate (SVR) deal then your lender can technically decide to change your rate whenever they like, but broadly speaking, they do move roughly with the Bank of England. Laura Suter, director of personal finance at AJ Bell, said: “Someone with a £125,000 tracker mortgage over 25 years will see around a £17 drop in their monthly payments as a result of a 0.25% cut today, while someone with £400,000 of borrowing over 25 years will see around £56 chopped from their monthly repayments – amounting to around £670 a year off their mortgage bill.“
If you have a fixed-rate mortgage, your payments won’t change today as you’ve already agreed to pay a fixed amount each month for a set period of time. However, when you come to remortgage, you may find the deals available today are more expensive compared to the deal you’re on now. Around 700,000 fixed-rate deals are due to end in the second half of this year, according to UK Finance.
Barclays
Barclays is cutting its tracker and variable rate mortgages by 0.25 percentage points from September 1.
Clydesdale and Yorkshire Bank
Clydesdale and Yorkshire Bank will cut its residential standard variable rate by 0.25 percentage points to 8.99%. Existing customers will see these new rates kick in from their next payment date after August 22, while new customers will see the new rates from August 15.
Coventry Building Society
Coventry Building Society is cutting its tracker and variable rate mortgages by 0.25 percentage points from September 1.
Halifax
Halifax also confirmed it is cutting its tracker rate by 0.25 percentage points. There will be changes to its SVR deals on September 1, with both the Halifax standard variable rate and Halifax homeowner variable rate decreasing to 8.49%.
HSBC
HSBC is cutting its tracker rates by 0.25 percentage points from today, but it has no plans to reduce its standard variable rate.
Lloyds
Lloyds Bank is cutting its tracker rate by 0.25 percentage points, and will also update its SVR deals on September 1. The Lloyds homeowner variable rate will decrease to 8.49% and the Lloyds standard variable rate will drop to 7.00%.
Metro Bank
Metro Bank confirmed it is cutting its tracker rate by 0.25 percentage points.
Nationwide
Nationwide is cutting its tracker and variable rate mortgages by 0.25 percentage points from September 1, with its SVR being reduced to 7.74%.
Santander
Santander was the first major lender to confirm it is reducing both its tracker mortgages and SVR deals. Santander will cut its SVR by 0.25 percentage points to 7.25%, while all its tracker mortgage products linked to the base rate will also decrease by the same amount, including its follow-on rate which will be lowered to 8.25%. Both come into effect from September 3.
Virgin Money
Virgin Money will cut its residential SVR by 0.25 percentage points to 8.99%, while its loyalty rate for qualifying residential customers who have held a Virgin Money mortgage on the same property for seven years or more will decrease to 8.74%. The new rates will take effect for existing customers from September 1 and for new customers from August 22.
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