Virgin Money and Clydesdale Bank cut variable mortgage rates after base rate drop

Virgin Money and Clydesdale Bank have confirmed a series of rate reductions on their variable and tracker mortgage products following today’s cut to the Bank of England base rate.

The Monetary Policy Committee voted to reduce the rate from 4.25% to 4.00%.

From 21st August 2025, Virgin Money’s Standard Variable Rate will fall from 7.24% to 6.99%, while its Buy to Let Variable Rate will reduce from 7.74% to 7.49%.

Tracker rates will be updated from 8th August to reflect the new base rate, with no changes to tracker differentials.

Clydesdale Bank is also reducing its variable rates from 21st August. The Standard Variable Rate will fall from 7.24% to 6.99%, the Offset Variable Rate from 7.24% to 7.14%, and the Buy to Let and Offset Variable Investment Housing Loan Rate from 7.74% to 7.49%.

For Virgin Money customers already in the pipeline, tracker applications or offers made today or earlier will proceed as normal, with new offers reflecting the reduced base rate.

Customers in the post-offer stage will receive direct communication outlining the impact on their monthly repayments.

Customers who have already completed on their tracker mortgage will be treated as existing customers and contacted ahead of the scheduled rate change.

Those with Virgin Money variable rate products will be informed of changes effective from 1st September.

Clydesdale Bank customers will see changes apply following their next payment date after 21st August, with updated payments due the following month.

Applications for fixed rate products at both lenders remain unaffected by this change.

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