The mutual said base rate-linked mortgage deals, which are guaranteed to be no more than 2% above the Bank of England base rate, will be reduced from 2.50% to 2.25% from 1 September. Customers on a standard mortgage rate will see their rate cut to 3.74%, while tracker mortgage borrowers will receive the full 0.25%, unless their loan has a tracker floor.
All new and pipeline applications affected by the rate cut will reflect the reduction from Wednesday 10 August.
Yesterday, Coventry Building Society was the first lender to communicate its plans to customers, with Santander, Barclays, Virgin Money and Natwest following shortly after – although some firms are still yet to confirm their stance for SVR borrowers.
Today, TSB revealed that existing customers on variable rate mortgages will see a 0.25% change to their rate from 1 September, with new customers benefitting from 8 August.
Leeds Building Society will also pass on the change to standard variable rate (SVR) borrowers from 1 September, with tracker rates reducing automatically following Mark Carney’s announcement.
HSBC is passing on the full reduction to customers with tracker mortgages today and SVR customers will see their rate drop from 3.94% to 3.69%from 1 September.
A spokesman for Yorkshire Building Society confirmed that tracker rates would be adjusted accordingly, subject to minimum rate conditions, but added that its SVR mortgages are still under review.
“All on-sale mortgage and savings accounts are unchanged at present,” he added.
CYBG (Clydesdale and Yorkshire banks) and Skipton Building Society are still finalising their plans.
Both firms said they were sitting tight and monitoring market reaction before they made their decisions.
