Northern Rock SVR only cut by 0.5%

Monday, 08 December 2008 05:30

Northern Rock standard variable rate (SVR) is to be cut by just 0.5 per cent.

Despite the Bank of England cutting interest rates by one per cent last week, the nationalised lender has only reduced its lending figure by half that amount.

The Northern Rock SVR will stand at 5.34 per cent and its Loyalty rate - for those with the banks over seven years - is down to 5.09 per cent.

All trackers will fall by one per cent.

The Novocastrian lender is the next in the line of lenders receiving government cash not to follow the Bank of England.

Halifax - part of the troubled HBOS group - lopped just 0.25 per cent off its SVR.

Royal Bank of Scotland - which incorporates NatWest - cut its SVR by 0.75 per cent, as did Bradford & Bingley.

Out of those taking government cash, only Lloyds TSB cuts its SVR by the full one per cent - announcing before the Bank of England decision its intention to follow the central bank.

Other banks also managed to make one per cent cuts.

The Barclays little-used SVR dropped 1.15 per cent and its trackers dropped the full one per cent. The HSBC SVR fell one per cent.

Northern Rock is also cutting its saving rates on a number of accounts - after not doing so following the November 1.5 per cent interest rate cut.

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