Santander became one of the first UK high street banks to reduce rates on savings accounts and mortgages following the Bank of England’s decision to cut rates from 4.75% to 4.5% last week.
Santander said it had made changes to some of its mortgage products and savings accounts following the rate reduction, while Yorkshire Building Society said it had reduced the rates of most of its savings products.
Most lenders will have reduced their standard variable rate (SVR) mortgage deals following the interest rate cut which Bank of England chief Andrew Baily said was necessary to boost the UK economy.
Fixed-rate mortgage deals and fixed-rate savings accounts are not affected.
Savers have managed to cash in on successive hikes in the Bank of England’s base rate over the last few years, while mortgage holders have faced increasingly more expensive monthly repayments
Santander has lowered the rates on its tracker mortgage products linked to the base rate by 0.25% from 3 March 2025.
This includes the Santander Follow-on Rate (FoR) which will decrease to 7.75% from 8.00%.
The Santander Standard Variable Rate (SVR) will also decrease by 0.25% to 6.75% from 7.00% on 3 March 2025.
Santander savings products linked to the Bank of England base rate will decrease by 0.25%, effective from March 3, 2025. The products linked to the base rate are the Rate for Life and Good for Life savings accounts.
Yorkshire Building Society has also said it will reducing the rates on most of our savings accounts up to 0.25% on March 11, 2025.
Savings accounts not affected include the Christmas Regular Saver and Christmas Regular eSaver (2025) accounts which will remain at 5%.
The First Home Saver and First Home eSaver rates will remain at 4.70% while the Loyalty Regular Saver 20203 and eSAver 2-23 rates will remain at 7%.
