Nationwide has reduced its mortgage rates following yesterday’s Bank of England (BoE) base rate cut. After the Monetary Policy Committee decided to reduce the base rate by 0.25%, customers who are on the building society’s standard mortgage rate (SMR) will see a decrease of the same amount. The new SMR of 6.49% will come into effect on 1 January. Rates on tracker mortgages held by existing Nationwide customers automatically decrease when the bank rate is cut, so these will decrease to reflect the bank rate change from 1 January 2026.

Paragon Bank has launched a new bank base rate tracker buy-to-let (BTL) mortgage range, designed to give landlords greater control and flexibility over their mortgage choices. The range tracks the BoE’s base rate with no early repayment charges, so landlords can switch at any point without penalty. The six products that form the range start at base rate plus 1.60% and are available on a five-year term at up to 75% LTV. Landlords can choose from three fee options, 0.75%, 1% and 1.5%, and interest coverage ratios are calculated at initial rate plus 2%. Three products are available for purchasing or remortgaging single self-contained properties, with three focused on HMOs and MUBs. The SSC option comes with no application fee, while £299 is payable when financing HMOs or MUBs.

Virgin Money and Clydesdale Bank have announced reductions to their mortgage rates. On 15 January, Virgin’s standard variable rate will move from 6.99% to 6.74%. On the same date, Clydesdale will also reduce its standard variable rate from 6.99% to 6.74%, while its offset variable rate will move from 7.14% to 6.89%. Virgin’s updated tracker rates will be available from 19 December and reflect the change to the BoE’s base rate.

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