Rate cut joy for borrowers

Posted: 22 Feb 2008 10:24:37 GMT

It has been revealed that the majority of UK mortgage lenders have already passed on the latest cut to the base rate of interest.

It has been revealed that the majority of UK mortgage lenders have already passed on the latest cut to the base rate of interest.

According to Moneyfacts, 57 lenders have already reduced their standard variable rates (SVRs).

It follows December's rate cut, after which many lenders were heavily criticised for failing to pass on the reduction.

Moneyfacts said that just eight lenders did not pass on the full 0.25 per cent reduction but it was generally pleased with the industry's swift response.

Unsurprisingly, Northern Rock was one of the banks that failed to pass on the full reduction.

"It comes as no great shock to see Northern Rock not passing on the full cut. Their SVR rate (7.59 per cent) is one of the highest in the market. New lending does not appear to be a major part of their strategy moving forward," said Michelle Slade from the firm.

"Many of the big lenders were uncharacteristically quick off the mark to announce their intentions," she added.

February's rate cut bought it down to 5.25 per cent.

© Houseladder Ltd