Mutual reprices standard and tracker deals; Clydesdale Bank and Virgin Money slash variable rates
Nationwide has become the first major lender to announce mortgage rate cuts after the Bank of England lowered the base interest rate by 0.25% to 3.75% earlier today.
Borrowers on Nationwide’s Standard Mortgage Rate (SMR) will see their pay rate reduced by 0.25 percentage points. The SMR will move to 6.49%, with the change scheduled to take effect from Jan. 1, 2026.
Customers with existing Nationwide tracker mortgages will also see their payments adjust automatically in line with the latest Bank Rate cut, as their products are contractually linked to the base rate. The reduction will mirror the 0.25% cut, with tracker differentials remaining unchanged.
“The Bank of England’s decision to cut the base rate has been widely anticipated and will provide a shot in the arm for the housing market,” commented Nick Hale, chief executive of home moving group Movera. “We’re already seeing lenders reducing their rates, increasing affordability for borrowers, and I expect this to be the springboard for a busy 2026 in the mortgage market.”
Menawhile, Nationwide-owned Clydesdale Bank and Virgin Money are also revising their variable mortgage rates.
From Jan. 15, the standard variable rate at Virgin Money and Clydesdale Bank will fall from 6.99% to 6.74%. Clydesdale Bank’s offset variable rate will decline from 7.14% to 6.89% on the same date.
Virgin Money’s updated tracker rates, reflecting the new 3.75% base rate while keeping tracker margins unchanged, will be available from tomorrow, Dec. 19.
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