Northern Rock mortgages receive 1.5% cut

Tuesday, 11 November 2008 12:00

Northern Rock has followed the Bank of England's lead and slashed standard variable mortgage rates by 1.5 per cent.

Mortgage customers on the standard variable rate (SVR) will now see the interest on their repayments plummet to 5.84 per cent from December 1st.

Borrowers of seven years or more, who therefore qualify for a loyalty discount, will also see a reduction in their rates to 5.59 per cent from December 1st. Northern Rock said it was giving these customers a 0.25 per cent discount.

Although Northern Rock said its savings rates remained unchanged, it revealed they were currently under review.

It said, in accordance with its savings pledge, variable rate savings account holders would be informed directly if their rate is to be altered.

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