Moves from Virgin Money, Clydesdale Bank, and others follow latest Bank of England base rate cut
Several lenders – Virgin Money, Clydesdale Bank, Suffolk Building Society, The Mortgage Works, and Gatehouse Bank – have announced reductions to mortgage rates in response to the Bank of England’s decision to lower the base rate from 4.50% to 4.25%.
Virgin Money and Clydesdale Bank will lower rates on a number of variable mortgages on May 29. Virgin Money’s standard variable rate (SVR) will fall from 7.49% to 7.24%, while its buy-to-let variable rate will drop from 7.99% to 7.74%. Clydesdale Bank will make the same adjustments to its SVR, offset variable rate, and buy-to-let variable investment housing loan rate.
Virgin Money tracker rates, which move in line with the base rate, now reflect the new rate. The tracker differential remains unchanged. For customers in the pipeline, offers will be based on the new rate. Those with completed tracker applications as of May 8 will be treated as existing customers and contacted about how the change affects their monthly payments.
Clydesdale Bank customers on variable rate discounted offset products will also see rate changes from May 29. Fixed-rate applications are not affected.
Customers already on variable or tracker rates will be notified of changes. Virgin Money customers on SVR or buy-to-let variable rate will see changes take effect on June 1, while those linked directly to the base rate will have updates applied on July 1. Clydesdale Bank customers will be contacted ahead of changes following their next payment after May 29.
Similarly, Suffolk Building Society will reduce its SVR by 0.25 percentage points to 7.89%, as a result of the latest BoE base rate cut. Customers on base rate tracker, discount, or SVR products will see their monthly payments drop by 0.25 percentage points from June 1.
Meanwhile, The Mortgage Works, the buy-to-let arm of Nationwide, is cutting rates by up to 0.30 percentage points on selected products for new and existing customers. The changes include a two-year fixed rate for buy-to-let purchases and remortgages at 2.79% (65% LTV, 3% fee), down by 0.20%; a two-year fixed rate for buy-to-let remortgages at 3.29% (75% LTV, 3% fee), down by 0.30%, with free valuation and legal services; and a limited company two-year fixed rate at 4.14% (75% LTV, 3% fee), down by 0.10%.
Switcher rates have also been lowered. Buy-to-let two-year fixed rates are now at 4.60% (65% LTV) and 4.79% (75% LTV), both with no fee, down by 0.10%. The limited company switcher rate is now at 5.94% (75% LTV, no fee), down by 0.05%.
Elsewhere, Gatehouse Bank has reduced rental rates by up to 0.27% on its buy-to-let purchase plans for UK expats and international residents. The changes apply to both standard and green two- and five-year fixed term products. Two-year rates have dropped by 0.26%, while five-year rates have fallen by 0.27%. The revised rates also apply to financing for houses in multiple occupation (HMOs) and multi-unit freehold blocks (MUFBs).
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