Virgin Money and Clydesdale Bank Reduce Mortgage Rates After Bank of England Base Rate Cut

Major Rate Reductions Announced by Virgin Money and Clydesdale Bank

Following a recent decision by the Monetary Policy Committee to reduce the Bank of England Base Rate from 4.25% to 4.00%, both Virgin Money and Clydesdale Bank have announced reductions to their variable mortgage rates. These changes could mean lower monthly payments for homeowners, buy-to-let landlords, and those considering remortgaging. Here’s what you need to know about these updates and how they may benefit you.

Summary of New Mortgage and Buy-to-Let Variable Rates

• Virgin Money Standard Variable Rate: Reduced from 7.24% to 6.99% (from 21 August 2025).
• Virgin Money Buy-to-Let Variable Rate: Reduced from 7.74% to 7.49% (from 21 August 2025).
• Clydesdale Bank Standard Variable Rate: Reduced from 7.24% to 6.99% (from 21 August 2025).
• Clydesdale Bank Offset Variable Rate: Reduced from 7.24% to 7.14% (from 21 August 2025).
• Clydesdale Bank Buy-to-Let/Offset Variable Investment Housing Loan Rate: Reduced from 7.74% to 7.49% (from 21 August 2025).

Tracker Rate Updates

• Virgin Money Tracker Mortgages: Updated rates available from 8 August 2025, adjusted in line with the new 4.00% Bank of England Base Rate. Tracker differentials remain unchanged.

Note: Applications for fixed-rate products are not affected by these changes.

What Do These Rate Changes Mean for Borrowers?

If you have a variable rate mortgage or buy-to-let mortgage with Virgin Money or Clydesdale Bank, your interest rate—and your monthly payment—will be reduced from late August 2025. For tracker mortgages, repayments will adjust in line with the base rate change, making borrowing more affordable for many UK homeowners and landlords.

Who Benefits Most?

• Existing variable rate customers: Benefit from automatic rate reductions on their next payment dates after 21 August 2025.
• Pipeline applicants (cases at application or offer stage): Will receive reduced rates and lower monthly payments when their mortgage completes.
• Buy-to-let landlords and property investors: Enjoy reduced variable and tracker buy-to-let rates, easing cash flow for portfolio management.
• Remortgagers: Now have more attractive options if considering switching lenders or products.

Frequently Asked Criteria and Timeline Updates

• Virgin Money tracker cases (application or offer stage): Offers will reflect new lower base rates. For post-offer (pre-completion) cases, you’ll be contacted about updated payments.
• Clydesdale Bank discounted offset product applicants: Will see interest rate reductions from 21 August 2025; communication will follow at completion.
• Existing Virgin Money & Clydesdale Bank customers: Notifications of new rates and payment changes will be sent from September and October onwards, as per product terms.

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Why Choose Virgin Money or Clydesdale Bank?

• Market-responsive lending: Swiftly adjust rates following changes in the Bank of England Base Rate.
• Competitive buy-to-let and standard variable rates suitable for a broad range of borrowers.
• Choice of products: Wide selection including tracker, variable, offset, and fixed rates.
• Efficient pipeline management: Fair rate application for both new and existing pipeline customers.
• Clear communication: Proactive notification of all changes and impacts on your mortgage.

Contact Us for Expert Mortgage Advice

With rates and lending criteria changing regularly, it’s crucial to act swiftly. Our team of fully qualified mortgage advisers can review your options, help you secure the best deal, and explain how changes affect your circumstances. Call us on 02392 006428 or visit our mortgage best buys page for the latest fixed and tracker rates.

Act now—submit your documents within 7 days to secure your rate, as lenders may change offers at short notice.

FAQs: Virgin Money & Clydesdale Bank Mortgage Rate Changes

• Who qualifies for these reduced mortgage rates?
  Both new and existing variable rate customers and buy-to-let landlords of Virgin Money and Clydesdale Bank qualify; tracker customers benefit from the base rate adjustment.
• How do these rate changes affect my monthly repayments?
  Lower interest rates mean reduced monthly repayments from your next scheduled payment date after the effective rate change.
• Are fixed-rate mortgage products affected?
  No, fixed-rate products are not impacted by the current changes—only variable and tracker products are adjusted.
• How soon will rate reductions take effect?
  New rates apply from 21 August 2025, with existing customers seeing changes from September or October, depending on their product.
• How can I apply or check if I qualify for these products?
  Contact our mortgage advice team or visit our best buy pages to get started. We’ll guide you based on your unique needs.