Virgin Money and Clydesdale Bank have confirmed adjustments to their variable mortgage rates in response to the Bank of England’s decision to reduce its base rate.
Yesterday, the Monetary Policy Committee (MPC) voted to lower the Bank of England Base Rate from 4.50% to 4.25%, prompting these changes to mortgage products.
Effective from 29th May, Virgin Money will reduce its standard variable rate (SVR) from 7.49% to 7.24%.
Additionally, the lender’s buy-to-let variable rate will also decrease, moving from 7.99% to 7.74%.
Clydesdale Bank will implement identical changes on the same date, with reductions in its SVR and offset variable rate to 7.24%, down from 7.49%.
The bank’s buy-to-let variable rate and offset variable investment housing loan rate will also drop from 7.99% to 7.74%.
In line with the Bank of England Base Rate adjustment, Virgin Money tracker mortgage rates will be updated today, 9th May 2025.
While the tracker rates will reflect the new base rate, the differential applied to these products will remain unchanged.
For customers with ongoing mortgage applications, Virgin Money has clarified how the changes will be applied.
Tracker mortgage applications currently in progress, including those submitted on or before 8th May, will proceed normally, with offers issued reflecting the updated base rate.
For cases that have already received an offer but have not yet completed, Virgin Money will write to customers to inform them of the revised base rate and how it will affect their monthly payments.
Customers whose tracker mortgages completed on or before 8th May will be treated as existing customers and subject to relevant changes outlined in their mortgage terms.
For Clydesdale Bank, customers with variable rate discounted offset products currently in the application or offer stage will benefit from the new lower interest rates from 29th May 2025.
These customers will be notified of their revised interest rate and monthly payment upon completion of their loan.
The lender has noted that these changes do not impact applications for fixed rate mortgage products, which remain unaffected by the base rate reduction.
Existing customers of Virgin Money whose mortgages are linked to the SVR or the buy-to-let variable rate will receive notifications indicating that their interest rate and monthly payments will change on 1st June.
Those on tracker mortgages tied directly to the Bank of England Base Rate will see changes to their monthly payments on 1st July, in accordance with their mortgage agreements.
Clydesdale Bank customers impacted by these adjustments will also be informed of the effective date for their new interest rate, which will take place following their next payment after 29th May. Their new monthly payments will be updated accordingly from the following month.
