Page last updated at 15:38 GMT, Monday, 10 November 2008

More lenders to mirror rate cuts

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The Monetary Policy Committee cut the Bank rate on Thursday

Two of the UK's larger mortgage lenders have joined the growing group of providers who are passing on interest rate cuts to customers.

Coventry Building Society joined Clydesdale and Yorkshire Bank in announcing it would pass on the Bank rate reduction in full.

On Monday, both announced they would make a 1.5 percentage point cut to standard variable rate (SVR) customers.

The Bank rate was slashed to 3% by the Bank of England on Thursday.

Coventry's SVR will drop from 6.84% to 5.34% on 1 December, while Clydesdale and Yorkshire's SVR will dip to 5.14% on the same day.

A group of the UK's biggest lenders announced on Friday that they would be passing on the Bank rate cut in full to SVR customers, although there are fears that interest rates on savings will also fall.

Since the Bank's announcement, a swathe of tracker mortgage deals for new customers have been withdrawn. They are expected to be re-priced and put on the market again later this week.

HOW MORTGAGE LENDERS RESPONDED

Lender SVR before BoE decision SVR after BoE decision Rate change (percentage points)
HBOS 6.50% 5.00% -1.5
Nationwide BS 6.19% 4.69% -1.5
Abbey 6.94% 5.44% -1.5
Lloyds TSB/ C&G 6.50% 5.00% -1.5
Northern Rock 7.34% 5.84% -1.5
Barclays 6.64% Under review  
RBS 6.69% 5.19% -1.5
HSBC 6.25% Under review  
Alliance & Leicester 6.94% Under review  
Bradford & Bingley 7.09% Under review  
Bristol & West 6.59% Under review  
Britannia BS 6.30% Under review  
Yorkshire BS 6.60% Under review  
GE Money 10.39% Under review  
Coventry BS 6.84% 5.34% -1.5
Standard Life 6.59% Under review  
Clydesdale & Yorkshire 6.64% 5.14% -1.5
Chelsea BS 7.24% Under review  
Skipton 6.45% Under review  



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