Santander, Virgin Money and Barclays were the first to reduce their Standard Variable Rates by 0.25%, following the Bank of England’s decision to drop the base rate from 0.5% to 0.25%. Although not obligatory, the Bank of England governor Mark Carney, stated there was no excuse for banks to not pass on this rate cut.
Nationwide has also now confirmed it will pass on the reduction to the majority of its borrowers, with base rate-linked mortgage deals, which are guaranteed to be no more than 2% above the base rate, being dropped from 2.5% to 2.25%. Customers on standard mortgage rates will also see rate reductions to 3.74%, whereas tracker mortgage borrowers can benefit from the full 0.25%.
Coventry Building Society was thought to be the first lender to actually communicate its plans with customers, while some lenders are still yet to confirm their position when it comes to Standard Variable Rates.
TSB has also now revealed that existing customers on variable rate mortgages will witness a 0.25% change to their rate from September, or August for new customers.
Leeds Building Society will be passing the changes on to standard variable rate borrowers from borrowers, while tracker rates reduced automatically following the Bank of England announcement.
The same applies to HSBC, where Standard Variable Rate customers will see their rate drop from 3.94% to 3.69%.
Meanwhile, Yorkshire Building Society has confirmed tracker rates will be adjusted accordingly, subject to minimum rate conditions, with no other changes announced as of yet.
Skipton Building Society and Clydesdale & Yorkshire banks are yet to finalise any plans, joining a selection of lenders who have decided to sit tight and monitor market reaction before a final decision is made.
Watch this space for further changes as they come. For more information on the Bank of England base rate drop and how it may affect your mortgage options, please do not hesitate to get in touch.