Barclays, Halifax, Lloyds, and Nationwide Slash Mortgage Rates After Bank of England Move
In a fresh boost for homeowners and buyers, some of Britain’s biggest lenders have confirmed cuts to mortgage rates after the Bank of England trimmed the base rate.
The Bank’s monetary policy committee lowered the rate from 4.25% to 4% on Thursday, 7 August – the fifth reduction since 2020. The move sparked swift action from Barclays, Halifax, Lloyds and Nationwide, each announcing new, lower rates that will take effect from 1 September.
Nationwide confirmed tracker mortgage and Standard Variable Rate (SVR) customers will see a 0.25% drop. Barclays said its tracker mortgage clients will also benefit from the same reduction.
Its current variable rate mortgage will shift from 6.24% to 5.99%, while the standard variable rate will dip from 7.74% to 7.49%.
Lloyds will trim its Homeowner Variable Rate from 7.74% to 7.49% and its SVR from 6.25% to 6%. Halifax, part of the Lloyds Banking Group, will mirror these reductions, bringing both its Homeowner Variable Rate and SVR down to 7.49%.
Industry experts say the move could ease the squeeze on borrowers.
Shaun Sturgess from Sturgess Mortgage Solutions commented: “The Bank of England’s decision to cut the base rate to 4% is a positive step for mortgage holders and buyers.”
He added: “It signals a shift in sentiment – and while we won’t see a flood of cheaper deals overnight, it does ease pressure on lenders and borrowers alike.
Tracker mortgage holders will benefit immediately, and fixed rates could edge down further. For aspiring buyers, this may improve affordability and bring confidence back into the market.
“Savers, however, may feel the pinch – it’s now more important than ever to review where your money is held.”
David Hollingworth, from mortgage broker LandC Mortgages, noted: “A rate cut was widely expected and markets expect that there could be more to come this year.
Fixed rates will therefore have priced in the latest cut and borrowers expecting to see a sharp dip in rates are likely to be disappointed.”
For now, UK borrowers are keeping a close eye on the next move from the Bank of England – and whether mortgage rates might fall even further in the coming months.
