Abbey cuts SVR mortgages by 1.5%

Halifax cuts SVR

Halifax is to cut its mortgage standard variable rate (SVR) after the Bank fo England's base rate cut.
Coventry cuts SVR on mortgages

Borrowers on Coventry Building Society's Privilege rate will see their mortgage cut to 6.50 per cent.

Friday, 07 November 2008 12:00

Abbey is to pass on the full 1.5 per cent Bank of England base rate cut to customers on its standard variable rate (SVR) mortgages.

The bank is one of the first to announce its customers will benefit from yesterday's move by the Monetary Policy Committee to slash interest rates to three per cent.

It means Abbey's SVR will tumble from 6.94 per cent to 5.44 per cent.

The cuts will not only benefit existing customers on Abbey's SVR, but also those on tracker rate mortgages and flexible offset deals.

Abbey said customers would see these rates cut from the start of December.

Mortgage industry experts still think Abbey will be in the minority of lenders reducing rates, however.

Ray Boulger of mortgage adviser John Charcol, said: "As with last month, I expect only a small minority of lenders to cut their SVR by the full amount."

Twitter: My Finances