Mortgage.net - Six lenders slash mortgage rates

Friday, 14 Dec 2007 17:08 - Six mortgage providers have slashed standard variable rates (SVRs) following last weeks base rate cut with a further 31 making changes, independent figures show. The surprise move by the Bank of England prompted the largest lenders Abbey, Cheltenham & Gloucester, Halifax, Nationwide, NatWest, Royal Bank of Scotland and Woolwich to spring into action fastest. Moneyfacts.co.uk, which compiled the data, said mortgage rates had moved at a similar pace since the base rate announcement as they had when the last two rate increases happened in May and July.

However, last time rates fell, in August 2005, the reaction was much faster with 46 lenders making an announcement.

Moneyfacts analyst Lisa Taylor said it was promising that, with the exception of six of the rate changes, the remainder had been the full 0.25 per cent reduction this time.

In the savings market 12 providers announced rate reductions across their entire variable rate range, four amended the majority of products and 11 amended at least one account. Most changes were tended to be the full 0.25 per cent, said Moneyfacts.

Ms Taylor added: With the financial markets still unsettled and dealing with the ongoing credit crisis, it is no surprise that the market seems to also be reacting differently to this base rate move.

"Historically we have taken it for granted that virtually all banks and building societies will move their savings and mortgage standard variable rates. But the early signs may indicate this may not be the case this time."