Barclays, Halifax, Lloyds, and Nationwide slash mortgage rates

Following the Bank of England's decision to slash the base rate from 4.25% to 4% on Thursday, August 7, major lenders including Barclays, Halifax, Lloyds, and Nationwide have announced cuts to their mortgage rates. This marks the fifth reduction in interest rates since 2020.

Nationwide has confirmed that from September 1, customers with tracker mortgages and Standard Variable Rates (SVRs) will benefit from a 0.25% cut.

Barclays also declared that all of its tracker mortgage customers will enjoy a 0.25% rate reduction starting September 1.

Barclays' variable rate mortgage will drop from 6.24% to 5.99%, while its standard variable rate will decrease from 7.74% to 7.49%.

Lloyds is set to align its rates with the base rate cut from September 1, trimming its Homeowner Variable Rate from 7.74% to 7.49% and its Standard Variable Rate from 6.25% to 6%.

Halifax, part of the Lloyds Banking Group, will also implement rate reductions from September 1, with its Homeowner Variable Rate falling from 7.74% to 7.49% and its Standard Variable Rate going down from 7.74% to 7.49% , reports Birmingham Live.

Shaun Sturgess from Sturgess Mortgage Solutions said: "The Bank of England's decision to cut the base rate to 4% is a positive step for mortgage holders and buyers."

He added: "It signals a shift in sentiment - and while we won't see a flood of cheaper deals overnight, it does ease pressure on lenders and borrowers alike.

"Tracker mortgage holders will benefit immediately, and fixed rates could edge down further. For aspiring buyers, this may improve affordability and bring confidence back into the market.

"Savers, however, may feel the pinch - it's now more important than ever to review where your money is held."

David Hollingworth, from LandC Mortgages, said: "A rate cut was widely expected and markets expect that there could be more to come this year.

"Fixed rates will therefore have priced in the latest cut and borrowers expecting to see a sharp dip in rates are likely to be disappointed."