News & Investigations Reporter
22 December 2025
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Many mortgage lenders are cutting tracker and variable rates for existing customers as the dust settles on the Bank of England’s decision to cut the base rate from 4% to 3.75% just days ago (on Thursday 18 December). If you’re on one of these types of mortgages, here’s what’s happening to your rate.
Mortgage changes lender-by-lender
If you’re on a fix, your rate is locked in and won’t change until your fix ends. So you won’t be directly affected by the base rate decision.
If you’re on a tracker or variable rate, you’ll likely see a cut soon. A rate cut of 0.25 percentage points is equivalent to roughly £15 a month less in repayments per £100,000 of mortgage debt. Here’s what all of the major lenders are doing:
Is your lender cutting mortgage rates?
Lender
Tracker rate change
Standard variable rate (SVR) change
AIB (NI)
Down 0.25 percentage points – awaiting exact date
Down from 6.85% to 6.6% – awaiting exact date
Atom Bank
Awaiting response
Awaiting response
Bank of Ireland UK
Down 0.25 percentage points from 1 Jan
To be decided. Currently 7.19%
Barclays
Down 0.25 percentage points from 1 Jan
SVR down from 7.49% to 7.24% from 1 Jan. Follow-on rate down from 5.99% to 5.74% from 1 Jan (i)
Clydesdale Bank
Down 0.25 percentage points – from when varies depending on your T&Cs
Down from 6.99% to 6.74% – from when varies depending on your T&Cs
Co-op Bank
Down 0.25 percentage points from 1 Jan
To be decided. Currently 6.87%
Coventry BS
Down 0.25 percentage points immediately
Down from 6.74% to 6.54% from 1 Feb
Danske Bank
Down 0.25 percentage points immediately
Down from 6.3% to 6.15% from 5 Jan
First Direct
Down 0.25 percentage points immediately
Down from 6.49% to 6.24% from 9 Jan
Halifax
Down 0.25 percentage points from 1 Feb
SVR down from 7.49% to 7.24% from 1 Feb. Same applies to Homeowner Variable Rate (ii)
HSBC
Down 0.25 percentage points immediately
Down from 6.49% to 6.24% from 9 Jan
Leeds BS
Change and effective date varies depending on your T&Cs
To be decided. Currently 7.74%
Lloyds
Down 0.25 percentage points from 1 Feb
SVR down from 6% to 5.75% from 1 Feb. Homeowner Variable Rate down from 7.49% to 7.24% from 1 Feb (ii)
Metro Bank
Down 0.25 percentage points immediately
Down from 7.5% to 7.25% – exact date to be decided
Nationwide
Down 0.25 percentage points from 1 Jan
Down from 6.74% to 6.49% from 1 Jan
NatWest
Down 0.25 percentage points from 1 Jan
Down from 6.99% to 6.74% from 1 Jan
Newcastle BS
Down 0.25 percentage points from 1 Jan
To be decided. Currently 6.5%
Post Office Money
Awaiting response
Awaiting response
Principality BS
Down 0.25 percentage points from 1 Jan
Staying at 6.8%
Royal Bank of Scotland (RBS)
Down 0.25 percentage points from 1 Jan
Down from 6.99% to 6.74% from 1 Jan
Santander
Down 0.25 percentage points from 3 Jan
SVR down from 6.75% to 6.5% from 3 Jan. Follow-on rate down from 7.25% to 7% from 3 Jan (i)
Skipton BS
Change and effective date varies depending on your T&Cs
To be decided. Currently 6.54%
TSB
Down 0.25 percentage points from 17 Jan
SVR down from 6% to 5.75% from 17 Jan. Homeowner Variable Rate down from 7.49% to 7.24% from 17 Jan (ii)
Ulster Bank
Down 0.25 percentage points from 1 Jan
Down from 6.99% to 6.74% from 1 Jan
Virgin Money
Down 0.25 percentage points from 1 Feb
Down from 6.99% to 6.74% from 1 Feb
West Brom BS
Down 0.25 percentage points – from when varies depending on your T&Cs
Down 0.15 percentage points to 5.49%, 5.74% or 6.24% (depending on your loan-to-value) from 1 Feb
Yorkshire Bank
Down 0.25 percentage points – from when varies depending on your T&Cs
Down from 6.99% to 6.74% – from when varies depending on your T&Cs
Yorkshire BS
Down from 11 Jan – amount varies depending on your T&Cs
To be decided. Currently 6.99%
On your lender’s SVR? You can likely save £1,000s with a new deal
A standard variable rate (SVR) is the rate you pay once your current mortgage deal comes to an end. And because it’s variable, it can change at the lender’s discretion at any time – not necessarily in tandem with the base rate.
SVRs are normally far more expensive than the best fixed or tracker deals – right now, a typical SVR is around 6.5% to 7.5%, while the top two- and five-year fixed rates stand at around 3.7%. So if you’re on an SVR, you should consider switching to a new deal now – see our Cheap mortgage finding guide for help securing the best deal for you.
Savings rates are also dropping
Unsurprisingly, banks are less keen to shout about rate cuts on savings – but we have seen some of the top rates for newbies drop since the latest base rate cut, and it’s likely more will follow.
For example, the top easy-access cash ISA from Trading 212, which paid up to 4.52% last week, has now been cut by 0.25 percentage points to 4.27%. Meanwhile, Chase’s standard easy-access saver (linked to its current account), currently pays 2.5% excluding bonuses – but this will drop to 2.25% on Monday 29 December.
If you have any variable rate savings – such as an easy-access account, notice account or a current account paying interest – look out for a rate change notification from your provider and ditch and switch if necessary. If it’s anything less than 4%, you can quickly and easily boost it. For help finding the right account for you, try our brand-new Savings Picker.
Credit cards are mostly unaffected
Credit cards are mostly unaffected as their interest rates are already significantly above the base rate. If you’re paying credit card interest, check if you can save £1,000s by shifting the debt to 0% using a balance transfer card. Right now you could get up to 35 months interest-free.
Cheap new loan rates could come down marginally
Existing loans are unaffected as they’re usually fixed rates. New loan rates are typically set on interest rate forecasts rather than base rate moves, but the cheapest new loan rates could come down very marginally.
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