In a swift response to the Monetary Policy Committee’s decision, Virgin Money and Clydesdale Bank have promptly reduced their variable rates following the Bank of England’s Base Rate reduction to 4.75%.
- Virgin Money will lower its standard and buy-to-let variable rates, impacting customers’ monthly payments.
- Clydesdale Bank will implement rate cuts earlier, benefiting both standard and offset variable rate borrowers.
- These changes only apply to variable rate products, leaving fixed-rate applications unaffected.
- Affected customers will be notified of the new rates and payment amounts at different times.
Following the Bank of England’s Base Rate reduction to 4.75%, Virgin Money and Clydesdale Bank have made adjustments to their variable interest rates. Starting from 28th November, Virgin Money is set to reduce its standard variable rate (SVR) from 8.99% to 8.24%, while the buy-to-let variable rate will decrease from 9.19% to 8.44%. This move is expected to offer customers more affordable options on various mortgage and loan products.
Clydesdale Bank is taking proactive steps by implementing their rate reductions from 21st November. Customers with standard variable rates will experience a drop from 8.99% to 8.24%. Moreover, those with offset variable rate products will see a reduction from 9.20% to 8.45%. The bank’s buy-to-let variable rate and offset variable investment housing loan rate will also decrease from 9.49% to 8.74%. These modifications will be available for loans at both the application and offer stages, providing much-needed relief to borrowers.
It is important to note that these rate changes pertain exclusively to variable rate products. Applications for fixed-rate or tracker mortgage products remain unaffected by these adjustments. For Virgin Money’s existing customers, the revised rates will take effect starting from 1st December, with communication detailing the updated rates and monthly repayment amounts to follow.
Clydesdale Bank customers will notice these changes after their next payment date following 21st November. The new monthly payment will then apply from the subsequent month. In both cases, the banks are committed to informing customers individually about the specific changes to their rates and payments, ensuring transparency and clarity in this period of adjustment.
Adjustments in variable rates offer financial relief for borrowers amidst evolving economic conditions.
