Update 2.45pm Friday 5 August: As the days go on more providers will be making their decisions regarding their standard variable rates (SVRs). To keep up-to-date on how your mortgage rate may be affected, see our main base rate analysis news story.
Mortgage providers appear reluctant to commit to reducing their standard variable rates (SVRs) in the wake of the Bank of England's decision to lower the base rate to 0.25%, with just five major firms able to say they will definitely do so.
Today's base rate cut – the first in seven years – means the cost of around 1.5 million 'tracker' mortgages should drop. But fixed mortgages won't change and the picture is much less clear for those on lenders' SVRs.
While SVRs often rise or fall with the base rate, they're set at lenders' whim and firms aren't obliged to drop rates just because the base rate's moved. 'Tracker' mortgages 'track', or follow, the Bank of England base rate, rising and falling along with it.
See our Bank of England base rate cut news story for full details of what today's decision means for you.
Lenders tight-lipped on SVR changes
We've spoken to 16 of the biggest mortgage lenders following the Bank of England's announcement – between them, they account for almost 90% of mortgages in the UK.
We asked them whether they'll be changing their SVRs in light of the base rate cut. But only five – Barclays, Coventry, Santander, Virgin and Nationwide – would guarantee they'll pass on the rate cut to SVR customers.
See the table below for a full lender-by-lender breakdown:
What mortgage providers are doing
|Provider||Change to tracker mortgages||Change to SVR|
|Bank of Ireland||Rate under review||Rate under review|
|Barclays||0.25 percentage point cut (from 5 Aug for new customers; from 1 Sep for existing)||0.25 percentage point cut to 4.74% (from 5 Aug for new customers; from 1 Sep for existing)|
|Britannia||0.25 percentage point cut from 1 Sept||Rate under review|
|Clydesdale||Will pass on changes "in line with T&Cs" but won't say when||It is "continuing to monitor the market" before making a decision|
|Co-op Bank||0.25 percentage point cut from 1 Sept||Rate under review|
|Coventry||0.25 percentage point cut from 1 Sept||0.25 percentage point cut to 4.49% from 1 Sept|
|First Direct||0.25 percentage point cut from 5 Aug||Rate under review|
|Halifax||0.25 percentage point cut from 1 Sept||Rate under review|
|HSBC||0.25 percentage point cut from 5 Aug||0.25 percentage point cut to 3.69% from 3.94% from 1 Sept|
|Leeds BS||0.25 percentage point cut (date dependent on product's T&Cs)||0.25 percentage point cut to 5.44% from 5.69% from 1 Sept|
|Lloyds||0.25 percentage point cut from 1 Sept||Rate under review|
|Nationwide||0.25 percentage point cut from 1 Sept||0.25 percentage point cut to 3.74% or 2.25% from 1 Sept (1)|
|NatWest||0.25 percentage point cut (we're checking when this will happen)||Rate under review|
|RBS||0.25 percentage point cut (we're checking when this will happen)||Rate under review|
|Santander||0.25 percentage point cut from 1 Sept||0.25 percentage point cut to 4.49% from 1 Sept|
|Skipton||Rate under review||Rate under review|
|TSB||Rate under review||Rate under review|
||0.25 percentage point cut – (from 5 Aug for new customers; from 1 Oct for existing)||0.25 percentage point cut from 1 Sept|
|West Brom BS||0.25 percentage point cut from 1 Sept||Rate under review|
|Yorkshire BS||No info yet – we're waiting to hear back||No info yet – we're waiting to hear back|
(1) Nationwide customers who took out their mortgage before 30 April 2009 are on its Base Mortgage Rate, currently 2.5%. Mortgages reserved with Nationwide after that date revert to its Standard Mortgage Rate, currently 3.99%.
Last updated 1pm Fri 5 Aug
What do the lenders say?
Many of the providers we spoke to today said they were reviewing their SVRs in light of today's base rate cut – but stopped short of giving any assurance that the rate would change.
A spokesperson for Nationwide said only: "Nationwide is working through what this may mean for its savings, variable rate mortgage and current account customers. We will be communicating any changes in due course."
A Clydesdale Bank spokesperson said: "We note the base rate cut and remain focused on providing our customers with a high level of customer service and fair interest rates. We will, of course, pass on the changes in line with the terms and conditions of our products and continue to monitor the market closely before making any further decisions."
And a spokesperson for Skipton told us: "We're now looking at how this will impact our mortgage and savings interest rates. As a responsible business, we always seek to balance the needs of our savers and borrowers, and act in the best mutual interests of our wider membership, and of the business as a whole.
"As such, it is appropriate at this time for us to see how the market reacts to this news, and then make a balanced decision around the most appropriate treatment of our managed variable rates, for both mortgage borrowers and savers. We will of course be in touch with any customers over the coming days if their accounts are affected by today's decision."