The Bank of England’s decision to cut interest rates by 0.25% on Thursday, 18 December, marks an important moment for the UK mortgage market, offering some relief to borrowers after a prolonged period of elevated borrowing costs. While mortgage rates remain well above pre-pandemic norms, the move signals a cautious shift in monetary policy as inflation eases and policymakers look to support economic stability without reigniting price pressures.
Following the 0.25% decrease in the Bank Rate, mortgage customers who are on Nationwide’s Standard Mortgage Rate (SMR) will see a decrease of 0.25%.
The new SMR of 6.49% will come into effect on 1 January 2026.
Rates on tracker mortgages held by existing Nationwide customers automatically decrease when Bank Rate is cut, so these will decrease to reflect the Bank Rate change from 1 January 2026.
