Mortgage lenders pass on 0.5% rate cut

Mortgage lenders pass on 0.5% rate cut

Eight major lenders yesterday confirmed plans to pass on the full 0.5% base rate cut to mortgage holders.

Abbey, Barclays, Cheltenham & Gloucester, Halifax, HSBC, Lloyds TSB, Nationwide Building Society and Skipton Building Society have all announced interest rate cuts.

Abbey said the full rate cut will be passed on to tracker mortgage holders, whilst its Standard Variable Rate (SVR) mortgage is under review.

Nationwide will cut its base mortgage rate from 3.5% to 3% on 1 March, whilst customers who took out a tracker mortgage before 1 December will benefit from the full 0.5% rate cut.

Barclays, HSBC, Lloyds, Halifax, Skipton, and Cheltenham & Gloucester have all pledged to reduce their SVR by 0.5%.

According to data from the Council of Mortgage Lenders, 40% of UK mortgages are on tracker or discounted variable rates.

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