Several big banks have slashed their mortgage rates following the Bank of England’s decision to cut the base rate to 5%. This is a welcome relief for borrowers who have been hit hard by rising interest rates in recent months.

Coventry Building Society, Santander, Virgin Money, Clydesdale and Yorkshire Bank cut rates.

The Bank of England’s decision to cut the base rate by 0.25% has sparked a wave of cuts to standard variable rate (SVR) mortgages.

• Coventry Building Society is reducing rates on all its variable rate mortgages by 0.25% from 1 September.
• Santander is also cutting its SVR by 0.25% to 7.25% from 3 September. The bank is also reducing rates on its tracker mortgages, which are linked to the base rate, by 0.25% from the same date.
• Virgin Money is reducing its SVR from 9.24% to 8.99% from 1 September for existing customers and 22 August for new customers. The lender is also cutting its loyalty rate for customers who have held a mortgage for seven years or more to 8.74%. Buy-to-let borrowers will also see their rates fall from 9.44% to 9.19%.
• Clydesdale and Yorkshire Bank are reducing their residential SVR from 9.24% to 8.99% and their buy-to-let SVR from 9.74% to 9.49%. These changes will come into effect for new customers from 15 August and from the next payment date after 22 August for existing customers.

What Does This Mean for You?

If you’re a homeowner, it’s a good idea to check with your lender to see if your mortgage rate is being cut. You may be able to save hundreds or even thousands of pounds a year by switching to a cheaper deal.