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March 25, 2020
3 minute read
The Bank of England lowered the base rate by 0.50% to 0.25% on March 11th, and then made a further reduction to 0.10% on the 19th March.
This should result in tracker deals and many of those on standard variable rates and discount rates seeing a slight reduction in their monthly bills. Lloyds, Halifax, Virgin and Santander have already said that they will pass on the cut on standard variable rates. So check your payments and watch for correspondence from your lender.
Unsurprisingly fixed-rate borrowers won’t see any change given their fixed rate deals.
But more surprising is the news that we’re unlikely to see a new push of even cheaper fixed rate mortgage products on the market.
Despite having access themselves to cheaper money thanks to the base rate cut, lenders may not pass all of the benefit onto borrowers – and may be too worried about the prospects for their business, the housing market and possible increase of defaults during the coronavirus outbreak.
David Hollingworth from L&C said ‘Lender margins have been under severe pressure and I expect that many will want to take the chance to cling onto some of that margin and also will now be dealing with capacity issues as a result of the coronavirus impact. Like all businesses, lenders will be having to deal with the impact on their people, operations and customers of the coronavirus outbreak.”
Things are changing fast and announcements being made daily. As lenders struggle to keep up you may be better off directing questions about your mortgage to fee-free experts at London and Country in the first instance. Or check their SVR Watch showing real-time changes that lenders are making to their rates and passing onto customers.
Speak to our fee-free mortgage partners at L&C to help you
As the dust starts to settle following the base rate cut, now could be a good time to remortgage.
Here are some common reasons to remortgage – even with the cloud of uncertainty hanging over us:
Start remortgaging online or on the phone now with the fee-free mortgage experts at L&C
Homeowners and landlords can now apply for a three-month mortgage payment holiday by contacting their lender. The government’s new policy aims to ease the stresses facing mortgage holders during the coronavirus outbreak. Since the change was announced, there’s been some confusion about exactly who can apply and how, so take a look at our mortgage holiday guide for help.
March 25, 2025 
