NatWest and RBS cut standard mortgage rate by 0.25%

RBS &NatWest tweak standard mortgage rate

RBS and NatWest have cut their standard mortgage rates by 0.19 per cent.
Northern Rock cuts standard mortgage rate by 0.25%

Northern Rock has reduced the interest on its tracker mortgages by 0.5 per cent and has cut the standard variable rate by 0.25 per cent.

Monday, 12 January 2009 12:00

NatWest and the Royal Bank of Scotland (RBS) have slashed their standard variable rate (SVR) for savers and borrowers by 0.25 per cent.

The cut equates to half of the 0.5 per cent cut the Bank of England made to its base rate last week.

It means NatWest and RBS borrowers on SVRs will only see their repayments reduce by 0.25 per cent.

However, it also means savers with the bank will only see their interest fall by this amount. The SVR now stands at 4.19 per cent.

RBS and NatWest said the 0.25 per cent cut was made in a bid to strike a balance between the interests of both savers and borrowers.

Paul Geddes, chief executive of RBS retail banking, said: "The reduction to our SVR reflects the banks' desire to ensure the interests of both savers and borrowers are addressed.

"We will be cushioning our savers from the full impact of the Bank of England base rate cut and will ensure an average rate cut across our savings of less than 0.25 per cent."

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