Virgin Money and Clydesdale Bank are reducing selected variable and tracker rates following the Monetary Policy Committee’s decision to cut Bank rate from 4.00% to 3.75%.

The changes mean both brands’ standard variable rate will fall by 0.25 percentage points, from 6.99% to 6.74%, with effect from 15 January 2026.

Clydesdale Bank will also reduce its offset variable rate by the same margin, moving from 7.14% to 6.89% on 15 January 2026.

TRACKER PRODUCTS

Virgin Money said updated tracker rates will be available from 19 December 2025 and will reflect the lower Bank rate. The lender added that the tracker differential will not change.

For Virgin Money tracker cases that are at application or offer stage, including applications received on 18 December 2025, the lender said the case will proceed as normal and the offer will reflect the new Bank rate.

For tracker cases that are post-offer but pre-completion, including offers issued on 18 December 2025, Virgin Money said it will write to customers explaining how the revised Bank rate affects monthly payments.

Tracker cases completed up to and including 18 December 2025 will be treated as existing customers, Virgin Money said.

PIPELINE AND COMPLETIONS

For Clydesdale Bank variable rate discounted offset product cases at application or offer stage, the lender said customers will see a reduction from 15 January 2026 in line with the updated variable rate. Customers will be contacted on completion of the loan with their new rate and monthly payment, it added.

The lenders said applications for fixed-rate products are not affected by these changes.

EXISTING BORROWERS

Virgin Money said customers affected by the change to its standard variable rate will be contacted to confirm their rate and monthly repayment will change on 1 February 2026.

Virgin Money customers whose mortgage rates are directly linked to the Bank rate will also be contacted, with monthly payments due to change on 1 February 2026 in line with their mortgage terms and conditions, the lender said.

Clydesdale Bank said existing customers affected by the changes will be contacted to confirm when the new rate becomes effective, following their next payment date after 15 January 2026. The lender added that the new payment will then become effective from the month after that.