Chelsea slashes mortgage SVR

Friday, 21 November 2008 12:00

Chelsea Building Society is reducing its standard variable rate (SVR) for mortgage customers to 5.79 per cent.

The move makes Chelsea the latest borrower to slash its rates in line with the Bank of England, which cut the base rate by 1.5 per cent at the beginning of the month.

Chelsea's SVR is currently 7.24 per cent, according to its website. The new rate, which is 1.45 per cent less than the current SVR, will come into effect on December 31st 2008.

The cut comes as industry experts raised fears too few lenders were passing on the Bank of England's reduction borrowers.

Michelle Slade, analyst at Moneyfacts.co.uk, said: "Two weeks on from the last [base rate] cut and just 28 per cent of lenders have cut their standards variable rates.

"Normally by now around half of lenders would have announced their intentions."

• Tags:
• product news