Major UK Lenders Cut Mortgage Rates Following Bank of England Decision

Following the Bank of England’s decision to cut the base rate from 4.75% to 4.5%, several major lenders, including Barclays, HSBC, Nationwide, and Santander, have announced reductions in mortgage rates. This move is expected to benefit thousands of borrowers, particularly those on tracker and standard variable rate (SVR) mortgages, who will see their monthly repayments decrease.

Nationwide confirmed that its Standard Mortgage Rate (SMR) will drop by 0.25% to 7.24%, effective from 1 March 2025. Tracker mortgage customers will also see their rates adjusted automatically in line with the Bank Rate change. Similarly, Santander announced that its SVR will decrease to 6.75%, and its tracker mortgage rate, known as the Follow-on Rate (FoR), will drop to 7.75%, with changes taking effect from 3 March 2025.

Barclays and HSBC have also adjusted their rates, with Barclays reducing rates on tracker mortgages and some fixed-rate products by up to 0.25 percentage points. HSBC made pre-emptive changes to its fixed-rate products, with reductions applied to certain buy-to-let and residential mortgages. However, fixed-rate mortgage customers, who make up the majority of borrowers, will not see immediate changes as their rates remain locked until the end of their agreed terms.

The rate cut, aimed at stimulating economic growth, comes as inflation has fallen to 2.5%, close to the Bank of England’s 2% target. While the reduction is expected to provide relief to many homeowners, experts caution that the full impact on mortgage rates may take time to materialise, as lenders adjust their offerings in response to market conditions.

Barclays, HSBC and Nationwide slash mortgage rates after BoE interest cut

Barclays, HSBC and Nationwide slash mortgage rates after BoE interest cut

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Nationwide reduces mortgage rates following Bank Rate cut

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News from the Nationwide Building Society

www.nationwidemediacentre.co.uk
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