More than 600,000 to see cuts of £341 a year on tracker rate mortgages within days
Major banks have given the exact dates that customers with tracker mortgages will see their repayments reduce
A cut in mortgage bills worth £341 a year is on the way for 643,000 home buyers, easing the squeeze on household finances, according to experts.
Major banks have given the exact dates that customers with tracker mortgages will see their repayments reduce in line with the 0.25 percentage point fall in the Bank of England base rate.
The average saving made by these buyers is put at by an average of £28.44 a month or £341 a year, according to figures from the banking industry trade body UK Finance.
And there are hopes that this saving could be doubled with a further quarter point cut which could come in November.
Customers with Standard Variable Rate (SVR) or Follow on Rate mortgages will also see reductions, however these rates remain punishingly high and buyers are advised to avoid being stuck on them.
Separately, major banks and building societies are launching a raft of new cheaper fixed rate deals which are below 4 percent, which will help first time buyers.
There are some 643,000 mortgage customers currently on tracker mortgages, who are always the first to see the effects of changes in the Bank of England base rate.
Here are the dates that tracker rate mortgage customers can expect to see their home loan bill come down.
Barclays
Borrowers with tracker or variable rate mortgage with Barclays will see mortgage rates fall by 0.25% on September 1.
A Barclays spokesperson said: "Following the decision by the Bank of England to decrease its base rate, we will be decreasing our rates across tracker mortgage and Barclaycard products."
Halifax
Customers with mortgages that track the bank base rate will see their rate cut with immediate effect in line with their terms and conditions.
The Halifax homeowner variable rate, currently at 8.74 percent, will also decrease by 25 basis points to a still punishing 8.49 percent.
All changes will come into effect for existing customer accounts from September 1.
HSBC
From Friday, August 2, all HSBC tracker rates were reduced in line with the Bank of England base rate.
However, the bank has no plans to reduce its residential standard variable rate (SVR).
NatWest
Following the Bank of England base rate cut, customers on tracker mortgages will see rates fall from September 1.
The lender will also be passing on the rate cut in full to customers on an SVR mortgage.
SVR will be reduced from 8.24 percent to 7.99 percent, effective from September 1.
Santander
Santander announced that it would decrease all tracker and standard variable rate mortgages by 0.25 percent in line with the base rate from September 3, 2024. .
This includes the Santander Follow-on Rate (FoR), which will decrease to 8.25 percent.
The Santander SVR will also decrease by 0.25 percent to 7.25 percent from September 3.
Lloyds Bank
Customers with a mortgage that tracks the bank base rate will have seen their rate cut with immediate effect in line with their terms and conditions.
The Lloyds Bank homeowner variable rate, currently at 8.74 percent will decrease by 25bps to 8.49 percent.
The Lloyds standard variable rate, currently at 7.25 percent will decrease by 25bps to 7.00 percent.
All changes will come into effect for existing customer accounts from September 1.
