Mortgage lenders cut rates for some after Bank of England base rate decision – check if yours is changing
Many mortgage lenders are cutting tracker and variable mortgage rates for existing customers as the dust settles on the Bank of England's decision to cut the base rate from 4.25% to 4% just days ago. If you're on one of these types of mortgages, here's what's happening to your rate.
Mortgage changes lender-by-lender
A rate cut of 0.25 percentage points is equivalent to roughly £15 a month less in repayments per £100,000 of mortgage debt – here's what all major lenders are doing:
Lender | Tracker rate change | Standard variable rate (SVR) change |
|---|---|---|
AIB (NI) | Down 0.25 percentage points from 17 Sep | Down from 7.1% to 6.85% from 17 Sep |
Atom Bank | Doesn't offer trackers | Staying at 6.99% |
Bank of Ireland UK | Down 0.25 percentage points from 1 Sep | To be decided. Currently 7.44% |
Barclays | Down 0.25 percentage points from 1 Sep | Down from 7.74% to 7.49% on 1 Sep. Follow-on rate down from 6.24% to 5.99% from 1 Sep (i) |
Clydesdale Bank | Down 0.25 percentage points – from when varies depending on your T&Cs | Down from 7.24% to 6.99% – from when varies depending on your T&Cs |
Co-op Bank | Down 0.25 percentage points from 1 Sep | Down from 7.12% to 6.87% from 1 Sep |
Coventry BS | Down 0.25 percentage points from 1 Sep | To be decided. Currently 6.94% |
Danske Bank | Down 0.25 percentage points immediately | Down from 6.45% to 6.3% from 1 Sep |
First Direct | Down 0.25 percentage points immediately | To be decided. Currently 6.74% |
Halifax | Down 0.25 percentage points immediately | Down from 7.74% to 7.49% from 1 Sep. Same applies to Homeowner Variable Rate (ii) |
HSBC | Down 0.25 percentage points immediately | To be decided. Currently 6.74% |
Leeds BS | Down 0.25 percentage points – from when varies depending on your T&Cs | To be decided. Currently 7.74% |
Lloyds | Down 0.25 percentage points immediately | Down from 6.25% to 6% from 1 Sep. Homeowner Variable Rate down from 7.74% to 7.49% from 1 Sep (ii) |
Metro Bank | Down 0.25 percentage points immediately | Down from 7.75% to 7.5% immediately |
Nationwide | Down 0.25 percentage points from 1 Sep | Down from 6.99% to 6.74% from 1 Sep |
NatWest | Down 0.25 percentage points from 1 Sep | Down from 7.24% to 6.99% from 1 Sep |
Newcastle BS | Down 0.25 percentage points from 21 Aug | Staying at 6.5% |
Post Office Money | Down 0.25 percentage points from 1 Sep | To be decided. Currently 7.44% |
Principality BS | Down 0.25 percentage points from 1 Sep | Down from 6.92% to 6.8% from 1 Sep |
Royal Bank of Scotland (RBS) | Down 0.25 percentage points from 1 Sep | Down from 7.24% to 6.99% from 1 Sep |
Santander | Down 0.25 percentage points from 3 Sep | Staying at 6.75%. Follow-on rate down from 7.5% to 7.25% from 3 Sep (i) |
Skipton BS | Down 0.25 percentage points – from when varies depending on your T&Cs | To be decided. Currently 6.5% |
TSB | Down 0.25 percentage points from 1 Sep | Down from 6.25% to 6% from 1 Sep. Homeowner Variable Rate down from 7.74% to 7.49% from 1 Sep (ii) |
Ulster Bank | Down 0.25 percentage points from 1 Sep | Down from 7.24% to 6.99% from 1 Sep |
Virgin Money | Down 0.25 percentage points from 1 Oct | Down from 7.24% to 6.99% from 1 Sep |
West Brom BS | Down 0.25 percentage points from 1 Sep | Down 0.1 percentage points to 5.64%, 5.89% or 6.39% (depending on your loan-to-value) from 1 Sep |
Yorkshire Bank | Down 0.25 percentage points – from when varies depending on your T&Cs | Down from 7.24% to 6.99% – from when varies depending on your T&Cs |
Yorkshire BS | Down 0.25 percentage points from 14 Sep | To be decided. Currently 7.24% |
This table covers residential mortgages only – changes may differ for buy-to-let mortgages. Dates shown are when rates will change for existing customers. (i) Depending on when you first took out your Barclays or Santander mortgage, you may be on either the SVR or follow-on rate, though both work similarly. (ii) Depending on when you first took out your Halifax, Lloyds or TSB mortgage, you may be on either the SVR or Homeowner Variable Rate (HVR), though both work similarly.
On your lender's SVR? You can likely save £1,000s with a new deal
A standard variable rate (SVR) is the rate you pay once your current mortgage deal comes to an end. And because it's variable, it can change at the lender's discretion at any time – not necessarily in tandem with the base rate.
SVRs are normally far more expensive than the best fixed or tracker deals – right now, a typical SVR is around 6% to 7.5%, while the top two- and five-year fixed rates stand at around 3.9%. So if you're on an SVR, you should consider switching to a new deal now – see our Cheap mortgage finding guide for help securing the best deal for you.
Savings rates are also dropping
Unsurprisingly, banks are less keen to shout about rate cuts on savings – but we have seen some of the top rates for newbies drop since the latest base rate cut, and it's likely more will follow.
For example, the top standard easy-access rate (available to Chase newbies) is dropping from 5% to 4.75% on Thursday 14 August. Meanwhile, top easy-access cash ISAs, which paid up to 4.87% last week, now pay up to 4.46% (two pay a bit more but only for a few days until their rate cuts come into effect).
If you have any variable rate savings – such as an easy-access account, notice account or a current account paying interest – look out for a rate change notification from your provider and ditch and switch if necessary.
Don't settle for less than 4% – see Martin's Savings Masterclass for help maximising your interest (the exact rates Martin mentions have changed slightly since the last update on Tuesday 5 August, but the principles still apply).
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