Mortgage lenders pass on interest rate cuts
I was wrong, there have been a few mortgage providers reacting to the Bank of England base rate cut by reducing their rates too. Of course the rate reductions will only come into effect from January 1st 2008.
Halifax was first to react reducing their Standard Variable Rate by 0.25 per cent from 7.75 per cent to 7.50 per cent. Nationwide were next reducing SVR again, by 0.25 per cent, from 7.24 per cent to 6.99 per cent.
If you have a £100,000 mortgage you should see the reduction in rates add an extra £15 to £20 to your pocket every month. If you’re on a fixed rate mortgage of course you’re tied into the lenders rate for the period of the offer.
Two lenders from every UK mortgage provider isn’t exactly a lot but Halifax and Nationwide are amongst some of the biggest lenders in the UK.