As you know the Bank of England (BOE) base rate was reduced by 0.50% to 0.25% on 11 March. Since then it has been further reduced by 0.15% to 0.10% and we can confirm that we’ll be passing on the full rate cut to existing customers as follows:
- The Santander and Alliance & Leicester Standard Variable Rates will reduce to 4.49% from 4.99% in April, with a further reduction to 4.34% from 4.49% in May.
- All tracker mortgage products linked to base rate will automatically reduce from April. This includes Santander’s Follow-on Rate, which will reduce from 4.00% to 3.35%.
- If a customer’s existing Santander mortgage is affected, they’ll receive a letter notifying them of their new interest rate and new monthly payment a minimum of five days before their monthly payment changes.
Further information
- Any pipeline applications already submitted and/or offered are not affected so you do not need to do anything.
- View our base rate FAQs for more information.
