Nationwide, HSBC, Lloyds TSB SVRs cut, Halifax, RBS down just 0.25%

Friday, 09 January 2009 04:00

Mortgage lenders have started to respond to the interest rate cut from the Bank of England - although not all are passing on the full cut.

The half point cut in the Bank rate should see monthly repayments on an average variable £100,000 repayment mortgages drop by £30.55 a month, while on an interest only deal the fall should be £41.67.

However, these cuts will only come if banks pass on the rate cuts.

Nationwide is to drop its Base Mortgage Rate (BMR) - the equivalent of its standard variable rate (SVR) - from 4.00 per cent to 3.50 per cent from 1 February 2009.

However, its tracker rate mortgages will not drop.

Halifax is to cut its SVR - but only by 0.25 per cent to 4.50 per cent. All Halifax tracker mortgage customers will see a cut.

Royal Bank of Scotland - with NatWest - is also not taking a full cut.

The firm will cut in its SVR by 0.25 per cent to 4.19 per cent - citing the need to balance interests of savers and borrowers. RBS and NatWest tracker mortgages will have the full half point cut.

Abbey's SVR - now at 4.94 per cent - remains under review - but all the lender's tracker deals will fall by 0.5 per cent.

HSBC has pledged to cut it variable mortgage rate to 3.94 per cent and all tracker mortgages - including the tracker currently on sale - all by 0.5 per cent.

Even before the rate cut was announced, Lloyds TSB - with its Cheltenham and Gloucester brand - announced it would match any Bank of England cut.

Pressure now mounts on the other banks that have taken support from the government during the credit crisis.

Northern Rock is to make an announcement "in due course", a spokesperson said, stating the bank had to balance the needs of borrowers and savers.

Royal Bank of Scotland is currently making its decision on its SVR mortgages, but all customers with tracker mortgages that track the Bank of England Base rate will see their rate cut.

• Tags:
• news
,
• standard variable rate