YBS, which also owns intermediary lender Accord Mortgages, will also pass on the rate to borrowers on tracker rates subject to rate collars, which are a feature of all the Yorkshire’s tracker deals.
Yorkshire Building Society said only a small proportion of its customers are currently on tracker mortgages, but would not reveal the exact amount.
|Brand||Current SVR||New SVR (from September)|
|Norwich & Peterborough BS||4.99%||4.74%|
After the Bank of England’s move last week, Coventry Building Society was the first lender ready to pass on the drop in interest rates to its variable rate borrowers, with more banks and building societies following over the course of Thursday and Friday.
A Yorkshire Building Society Group spokesperson said: “We are pleased to announce that we will be passing on the full 0.25% Bank Rate reduction to customers with standard variable rate (SVR) mortgages across all of our brands. The change in rate calculation will take affect from 13 September for Norwich & Peterborough customers and 11 September for all other brands.
“As confirmed previously, tracker rate mortgage customers will, subject to minimum rate conditions, also benefit from a lower interest rate in line with the Bank Rate from early September.”
Which lenders have passed on the rate so far?
- Coventry Building Society
Full cut to all variable-rate mortgage borrowers from 1 September.
All base-rate tracker mortgages and its SVR by the full 0.25% with customers to receive “advance notification” when they change.
- Virgin Money
A 0.25% cut to its SVR customers from 1 September. Customers whose mortgage rate is directly linked to the BBR will see their monthly payment change on 1 October in line with their mortgage terms and conditions.
Santander’s SVR will be 4.49%. The Alliance & Leicester SVR on mortgages will also be reduced by 0.25% to 4.74%. Tracker rates will be cut by the full amount from today.
The lender is currently reviewing whether it will make any changes to variable rate products and will provide an update ‘in the near future’. However, customers with base rate-linked products will see their rates reduce by 0.25%.
- Yorkshire Building Society
SVR and tracker rate customers (subject to terms and conditions) will benefit from early September.
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
Standard variable rate borrowers will see a reduction from 1 September, with tracker rates reducing automatically.
Borrowers with tracker mortgages will receive the full cut immediately, while SVR customers will see their rate drop from 3.94% to 3.69% from 1 September.
- Skipton Building Society
Residential and buy-to-let SVR and mortgage variable rate customers will receive the 0.25% reduction in full. Mortgage products linked to the BBR will move in line according to product terms and conditions. These new rates will be used to calculate mortgage repayments.