Page last updated at 11:23 GMT, Thursday, 7 May 2009 12:23 UK

UK's mortgage market in graphics

Mortgage graphics
£112,000 : Average new mortgage for house purchase
£40,000 : Average income of new mortgage holders
25% (£37,000) : Average deposit
14.6% : Average interest payment as proportion of income
Source: CML December figures

The Bank of England's Monetary Policy Committee has kept the Bank rate at 0.5%.

Here is a snapshot of the current state of the UK mortgage market in graphics, including a table showing which lenders have decided to pass on recent Bank rate reductions to variable rate mortgage holders.

Libor - the London Interbank Offered Rate - is key to the calculation of mortgage costs. It is the rate banks charge when they lend money to each other.

If the rate is high, this generally means that the interest rate charged on new home loans is more likely to be high. Some variable or tracker mortgages are linked to Libor rather than Bank rate.

Graph showing Bank rate and Libor

During the credit crunch, with banks uneasy about lending to each other, the gap between the Libor and bank rates grew wider.

Savers have also been affected by the recent cuts in interest rates, with their returns on deposits falling.

Here are some key facts on the situation for savers:

  • £1.5 trillion : Total UK consumer borrowing

Falling interest rates for savers
  • £1.28 trillion : Total UK consumer saving (including cash ISAs)
  • 0.81% : Average interest rate for savers in all bank and building society instant access accounts
  • 21% : Share of savings held by building societies
  • 70% : Share of savings in banks
  • 9% : Share of savings with National Savings and Investments

Source: Building Societies Association / Bank of England. Figures from December 2008.

HOW MORTGAGE LENDERS RESPONDED
Lender February SVR Change after March BoE decision* New SVR Total SVR cut since October*
SVR: Standard Variable Rate
* Percentage points
Halifax 4.00% -0.50 3.50% 3.50
Nationwide BS 3.00% -0.50 2.50% 3.99
Abbey 4.69% -0.45 4.24% 2.85
Lloyds TSB/C&G 3.00% -0.50 2.50% 4.50
Northern Rock 4.79% Under review 2.70
Barclays (Woolwich) 4.99% Under review 2.15
RBS 4.00% No change 4.00% 3.19
HSBC 3.94% No change 3.94% 2.31
Alliance & Leicester 4.99% Under review 2.20
Bradford & Bingley 4.59% Under review 2.50
Bristol & West 3.49% -0.5 2.99% 4.10
Britannia BS 4.49% Under review 2.31
Yorkshire BS 4.99% Under review 1.91
GE Money 7.94% Under review 2.45
Coventry BS 4.74% Under review 2.35
Standard Life 5.34% No change 5.34% 1.75
Clydesdale & Yorkshire 4.59% No change 4.59% 2.70
Chelsea BS 5.79% No change 5.79% 1.15
Skipton 4.00% -0.50 3.50% 2.95
One Account (RBS) 4.35% -0.25 4.10% 2.95



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