Santander becomes one of the first UK high street banks to respond to the Bank of England's interest rate cut by reducing rates on both savings accounts and mortgages. The move follows the Bank of England's decision to lower rates from 4.75% to 4.5% in an effort to stimulate the UK economy.
Santander has taken a lead among UK high street banks by reducing rates on both savings accounts and mortgages following the Bank of England's decision to lower interest rates last week. The Bank of England cut rates from 4.75% to 4.5%, a move intended to stimulate the UK economy. Santander 's announcement affects several mortgage products and savings accounts, while Yorkshire Building Society has also reduced rates on most of its savings products.
The standard variable rate (SVR) mortgage deals offered by most lenders are anticipated to have been lowered in response to the interest rate cut. Bank of England chief Andrew Bailey emphasized that the reduction was crucial for bolstering the UK economy. However, fixed-rate mortgage deals and fixed-rate savings accounts remain unaffected by this change. While savers have benefited from successive increases in the Bank of England base rate in recent years, mortgage holders have faced rising monthly repayments.Santander has specifically reduced rates on its tracker mortgage products tied to the base rate by 0.25% effective from March 3, 2025. This includes the Santander Follow-on Rate (FoR), which will drop to 7.75% from 8.00%. The Santander Standard Variable Rate (SVR) will also decrease by 0.25% to 6.75% from 7.00% on March 3, 2025. Furthermore, Santander savings products linked to the Bank of England base rate will see a 0.25% reduction, effective from March 3, 2025. This applies to products like the Rate for Life and Good for Life savings accounts, according to reports from the Express. Yorkshire Building Society has announced a reduction of up to 0.25% on most of its savings accounts from March 11, 2025. However, certain accounts, such as the Christmas Regular Saver and Christmas Regular eSaver (2025) will remain at a steady 5%. The First Home Saver and First Home eSaver rates will also stay constant at 4.70%, while the Loyalty Regular Saver 20203 and eSaver 2-23 rates will continue to offer a generous 7%
BANK OF ENGLAND INTEREST RATE MORTGAGES SAVINGS SANTANDER YORKSHIRE BUILDING SOCIETY
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