Changes to variable savings and mortgage interest rates
On 8 May 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 June 2025. We will write to customers impacted by this change during May 2025 with details of their new monthly payment which will be due at the end of June 2025.
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 July 2025. We will write to customers impacted by this change during June 2025 with details of their new monthly payment which will be due at the end of July 2025.
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 July 2025. We will write to customers impacted by this change during June 2025 with details of their new monthly payment which will be due at the end of July 2025.
We are decreasing our Residential, Buy To Let & Commercial Standard Variable Rates as follows:
Standard Variable Rate (SVR) – Decreasing from 7.64% to 7.44%
Buy To Let Standard Variable Rate (BTL SVR) – Decreasing from 8.99% to 8.74%
Commercial Variable Base Rate (CVBR) – Decreasing from 8.99% to 8.74%
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.
Customer Information: We will be reducing rates on our open and closed issue variable rate savings products from 08 July 2025 as follows:
- Personal variable savings rates will be reduced by up to 0.25%
- Business variable savings rates will be reduced by up to 0.20%
Click here for more information.
We will be writing out to existing customers from 18 June 2025 confirming these changes.
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 decrease will affect them.