The cut will be effective from 1 December 2020 and will apply across England, Scotland, Wales and Northern Ireland.

The SVR will be reduced by 2.03%, from 5.99% to 3.96%.

Stuart Miller, customer director at Newcastle Building Society, said: “As a member-owned organisation we are committed to supporting our customers own their own home by understanding their needs and taking a human, flexible approach to lending.

“The reduction in residential SVR will support our members who currently have an SVR-linked product, and other borrowers will benefit if their account matures onto our SVR at the end of their current deal.”