Trio of lenders cut SVRs by 0.25%

Following today’s decision to lower the Bank of England base rate to 0.25% from 0.50%, Santander, Virgin Money and Barclays have confirmed that their Standard Variable Rates will be reduced by 0.25%.

Related topics:  Mortgages
Rozi Jones
4th August 2016
Barclays
"Given changing market conditions, including the market expectation that interest rates will be lower for longer, we are also reviewing our current account interest rates."

Speaking today, Bank of England governor Mark Carney said that "banks have no excuse for not passing on this rate cut”.

A Barclays spokesperson said: “Customers with Barclays Bank Base Rate Tracker mortgages and customers on the Barclays Standard Variable Rate will see their rates reduce by 0.25%. We will provide advance notification to those customers whose mortgage payments will change.”

Jayne-Anne Gadhia, Chief Executive of Virgin Money, added: “We recognise the important role that banks have in supporting growth in the underlying economy by passing on lower borrowing costs to customers. As a result, Virgin Money will be passing on the full 25 basis point cut in Bank Rate to our mortgage Standard Variable Rate from 1 September 2016.”

Santander said it will pass on the savings from the beginning of September 2016 with an SVR of 4.49%. The Alliance & Leicester Standard Variable Rate on mortgages will also be reduced by 0.25% to 4.74%.

It also confirmed that rates on its existing personal and business savings accounts will not be reduced by more than 0.25% as a result of the base rate change.

Reza Attar-Zadeh, Head of Retail Products at Santander, said: “When we review rates, following a change in Bank of England base rate, we consider both the interest we charge for borrowing money, and the rate of interest we can offer on deposits. Santander is passing on the rate reduction in full to its mortgage customers and for our existing savings accounts, we’ll be reducing rates by no more than 0.25%. Given changing market conditions, including the market expectation that interest rates will be lower for longer, we are also reviewing our current account interest rates.”

More like this
Latest from Property Reporter
Latest from Protection Reporter
CLOSE
Subscribe
to our newsletter

Join a community of over 30,000 intermediaries and keep up-to-date with industry news and upcoming events via our newsletter.