Changes to variable savings and mortgage interest rates
On 18 December 2025, the Bank of England decreased its base rate by 0.25%. Please see below how this change will impact your savings or mortgage with the Cumberland.
What is the Bank of England base rate?
This is the interest rate set by the Bank of England for lending to banks and building societies. Providers will use this, along with market position and cost of funding, to help determine the interest rates for some mortgage and savings products.
Mortgage FAQs
If you have a mortgage product that directly tracks the Bank of England base rate, your interest rate will change in line with the 0.25% decrease from 1st January 2026. We will write to customers impacted by this change during December 2025 with details of their new monthly payment which will be due at the end of January 2026.
No. You will be unaffected by the change if you have a Fixed Rate mortgage product. The interest rate will remain the same on your product until it reaches the end of its term. We will then contact you around that time to discuss your options.
Yes. If you have a Residential mortgage product on a Discounted Variable Rate or Standard Variable Rate, your interest rate will decrease by 0.20% from 1st February 2026. We will write to customers impacted by this change during January 2026 with details of their new monthly payment which will be due at the end of February 2026.
Yes. If you have a Buy To Let or Commercial mortgage product on a Discounted Variable Rate or Standard Variable Rate, your interest rate will decrease by 0.25% from 1st February 2026. We will write to customers impacted by this change during January 2026 with details of their new monthly payment which will be due at the end of February 2026.
We are decreasing our Residential, Buy To Let & Commercial Standard Variable Rates from 1st February 2026 as follows:
- Standard Variable Rate (SVR) –Decreasing from 7.24% to 7.04%
- Buy To Let Standard Variable Rate (BTL SVR) –Decreasing from 8.49% to 8.24%
- Commercial Variable Base Rate (CVBR) –Decreasing from 8.49% to 8.24 %
For those mortgages that have a Discounted Variable Rate product linked to SVR, rates will decrease by 0.20%
For those mortgages that have a Discounted Variable Rate product linked to BTL SVR or CVBR, rates will decrease by 0.25%
Savings and Current Accounts FAQs
No. You will be unaffected by the change if you have a Fixed Rate savings product. The interest rate will remain the same on your product until it reaches the end of its term. We will then contact you around that time to discuss your options.
We are considering our approach to changes for our savings rates and will communicate any changes in due course.
There are no changes to standard personal or business overdraft rates as a result of these changes. Business customers with individual negotiated overdraft rates will be contacted separately to explain how the base rate change will affect them.