Major UK lenders have agreed to pass on base rate cut to standard variable rate borrowers
Santander confirmed it will pass on the full base rate cut to standard variable rate borrowers, joining Lloyds, Halifax, Barclays, HSBC, First Direct and Co-operative Bank, which announced their decisions yesterday.
Santander’s SVR will come down from 4.99 to 4.49 per cent from the beginning of April.
Lloyds, Halifax, Barclays and HSBC will also make the reductions on April 1, but Co-operative Bank will not cut its rates until May 1.
A spokesman for Computershare, which owns loan books containing thousands of mortgage prisoners, has told Mortgage Strategy that the full base rate cut will be passed on to borrowers from April 1.
This will apply to borrowers whose mortgages are held within the Heliodor, Melanite, Rosolite, Siberite and Topaz loan books.
Mortgage Prisoners action group lead campaigner Rachel Neale has contacted the owners of other loan books to urge them to pass the savings onto borrowers.
Halifax says its homeowner variable rate and standard variable rates will both come down from 4.24 to 3.74 per cent.
Lloyds’ homeowner variable rate will also come down from 4.24 to 3.74 per cent. Lloyds’ standard variable rate will come down from 2.75 to 2.25 per cent.
Barclays’ SVR for residential borrowers will be cut from 5.24 to 4.74 per cent and its buy-to-let SVR will be cut from 5.74 to 5.24 per cent.
HSBC’s residential SVR will come down from 4.19 to 3.69 per cent and its buy-to-let SVR will reduce from 5.25 to 4.75 per cent.
First Direct’s SVR will also come down from 4.19 to 3.69 per cent.
Co-operative Bank’s SVR will come down from 4.99 to 4.49 per cent.
Royal Bank of Scotland/ Natwest, Nationwide and Yorkshire Building Society all said they were still reviewing the situation and would make an announcement in due course.
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