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This month's 0.5 percentage point cut in the Bank of England base rate brings interest rates to their lowest level in history, but the cost of mortgages may not necessarily fall in line with it. Here's a round-up of what lenders have said so far about mortgage rates. We will be updating it over the comings days.
Halifax is to cut its standard variable rate (SVR) by 0.25%, to 4.50% with effect from 1 February. At the same time tracker mortgage customers will have their rates cut by the full 0.50%.
Royal Bank of Scotland will also reduce its SVR by 0.25%, to 4.19%, from 1 February. Tracker mortgages will have their rates cut by 0.50% from the same date. The changes also apply to mortgages taken out from NatWest.
Nationwide building society will reduce its SVR – which it calls its base mortgage rate – by the full 0.50% with effect from 1 February, bringing it down to 3.50%. Borrowers at the Cheshire and Derbyshire building societies, which last year merged with Nationwide, will also see their SVRs fall to 3.50%.
Nationwide will not cut rates on tracker deals, except those taken out since 1 December 2008.
HSBC has announced it will pass on the full 0.50% cut to SVR and tracker customers. The latter will feel the benefit immediately, while the cut in the SVR, which brings it down to 3.94%, will be effective from 6 February.
Skipton building society has announced it will cut its SVR by 0.50% within the next 30 days. It will fall to 4.50%. Tracker customers will not see rates fall as those mortgages have a 3% collar.
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