Barclays, Halifax, Lloyds, and Nationwide have announced reductions in their mortgage rates following the Bank of England’s decision to cut the base rate. The Bank of England’s monetary policy committee reduced the base rate from 4.25% to 4% on Thursday, August 7, which is the fifth reduction since 2020.
Nationwide has confirmed that customers with tracker mortgages and Standard Variable Rates (SVRs) will benefit from a 0.25% reduction starting September 1. Barclays also relayed that its tracker mortgage customers will experience a 0.25% rate cut from September 1.
The current variable rate mortgage at Barclays of 6.24% will be adjusted down to 5.99%. Additionally, Barclays’ standard variable rate will decrease from 7.74% to 7.49%. Lloyds has indicated that its rates will be trimmed in accordance with the base rate from September 1, with its Homeowner Variable Rate being reduced from 7.74% to 7.49% and its Standard Variable Rate going from 6.25% to 6%.
Halifax, part of the Lloyds Banking Group, will also implement rate reductions from September 1. The Halifax Homeowner Variable Rate will go down from 7.74% to 7.49%, and the Halifax Standard Variable Rate will be cut from 7.74% to 7.49%, reports Birmingham Live.
Shaun Sturgess from Sturgess Mortgage Solutions commented: “The Bank of England’s decision to cut the base rate to 4% is a positive step for mortgage holders and buyers.”
He added: “It signals a shift in sentiment – and while we won’t see a flood of cheaper deals overnight, it does ease pressure on lenders and borrowers alike. Tracker mortgage holders will benefit immediately, and fixed rates could edge down further. For aspiring buyers, this may improve affordability and bring confidence back into the market.
“Savers, however, may feel the pinch – it’s now more important than ever to review where your money is held.”
David Hollingworth, from mortgage broker LandC Mortgages, commented: “A rate cut was widely expected and markets expect that there could be more to come this year. Fixed rates will therefore have priced in the latest cut and borrowers expecting to see a sharp dip in rates are likely to be disappointed.”
