What the lower base rate means for your mortgage

Will your mortgage change?

With reduced costs for mortgage lenders, they may pass on the benefits of the base rate changes to customers on Variable and Base Rate Tracker Rates. This means there is potential for lower monthly interest payments for mortgage borrowers.

Lower variable-rate mortgages

Leading the market, Nationwide Building Society has announced reductions to their Standard Mortgage Rates (SMR) and their Tracker Mortgages from 1st December 2024.

If you already have a variable-rate or tracker mortgage in place, a decrease could take effect this year or as late as March 2025, depending on your lender’s terms and conditions. In cases where there is a delayed reduction, your overall mortgage balance should reduce more, as you would be effectively overpaying until your interest decreases.

What steps should you take next?

As the base rate reduction begins to affect mortgage rates, it’s essential to understand how these changes may affect your financial plans.

Whether you’re on a variable or fixed-rate mortgage, or exploring your first home purchase, our trusted partners can provide expert financial guidance.

Contact your local branch today to learn more about securing the right mortgage deal for you.

Sources:

Bank of England changes base rate | Nationwide

Nationwide Building Society offers radical new mortgage to couples earning £50k combined – Mirror Online

Base Rate cut to 4.75%: but what could it mean for mortgages? | Property news

Interest rates and Bank Rate | Bank of England

Interest rates live updates: Bank of England base rate cut to help slash mortgage bills

Some tracker mortgage holders won’t see bill drop this year despite base rate cut