Banks respond to record low Bank of England interest rate cut

Barclays said its savings rates are under review. Credit: Yui Mok / PA Wire

Banks and building societies have responded to the Bank of England's cut to interest rates.

Some plan to pass on the cut to the base rate to customers - which is bad news for savers but good news for borrowers.

  • Santander

All of Santander's mortgage products linked to the base rate will move in line with the reduction, in accordance with the terms of the deal.

From September, it will pass on the reduction to customers on a standard variable rate (SVR) mortgage "in full".Santander is also reviewing its current account interest rates.

It said rates on existing savings accounts will not be reduced by more than 0.25%.

  • Barclays

Customers with base rate tracker mortgages and customers on the Barclays SVR will see rates reduce by 0.25 points. The changes will start from September for existing customers.

Barclays also said savings rates are under review and customers will be contacted once a decision is made.

HSBC will reduce all its base rate linked tracker mortgage rates. Credit: Anthony Devlin / PA Wire

  • HSBC

From Friday, HSBC will reduce all its base rate linked tracker mortgage rates.

It said: "Neither our SVR nor our savings rates are directly linked to base rate, however in light of the Bank of England's decision we are currently reviewing our SVR and savings rates across our range and will notify our customers of any changes in due course."

  • Lloyds Banking Group (includes Halifax, Lloyds Bank and Bank of Scotland brands)

All variable rate products that track the Bank of England base rate will be reduced by 0.25 points from September.

  • RBS/NatWest

These banks are reviewing whether they will make any changes to variable rate products.

They said: "For those customers on base rate linked products, we will reduce their rate by 0.25%."

  • Nationwide Building Society

Nationwide will pass on the decrease to existing base mortgage rate, standard mortgage rate and tracker mortgage customers.

No savings customers on variable rates will see a reduction of more than 0.25%. The Flexclusive Regular Saver, at 5%, the FlexOne Regular Saver at 3.5% and the Help to Buy Isa at 2% will be protected at current rates.

  • TSB

The bank is reviewing its rates and will make a further announcement shortly.

TSB has offered to provide support for customers. Credit: Yui Mok / PA Wire

  • Yorkshire Building Society

The building society said customers with tracker rate mortgages will see their interest rate adjusted accordingly, "subject to minimum rate conditions".It is reviewing variable savings rates in the coming days, as well as reviewing SVRs across its brands.

  • The Co-operative Bank

The Co-op is reviewing the rates it offers to mortgage and savings customers and said it will communicate with customers "in due course".Co-op customers with tracker mortgages will see their rate fall in line with the base rate, unless their product has a floored rate, in which case the rate will not fall below the rate stated in the product terms and conditions.