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Northern Rock Bank Cuts Its Own Mortgage Rates |
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21 January 2009
Government-owned Northern Rock bank has become the latest lender to cut its mortgage rates in the wake of last week's cut in Bank Rate. 
Its standard variable rate (SVR) will reduce by 0.25% to 5.09% on 1 February. Existing tracker rate borrowers will rezceive the full 0.5% reduction, in line with their contracts.
The Bank of England's 0.5% cut in Bank Rate to 1.5%, its lowest level yet, has prompted several other big lenders to cut their mortgage rates. Among them have been Lloyds TSB, HBOS, RBS NatWest, HSBC and the Nationwide building society, though not all have applied the full 0.5% reduction.
Under Review
A spokesman for the Northern Rock, nationalised early in 2008, said: "Following the 0.50% cut in the Bank of England Base Rate on 8 January, Northern Rock has given careful consideration to all of its customers."
"Savings rates remain under review and in accordance with its Savings Pledge, Northern Rock will directly inform variable rate savings account holders in advance if their rate is to change," it added.
These latest changes affect only existing customers. The bank said it had not made any change to the rates on offer to people who might want to take out one of its fixed-rate mortgages. Currently it has no tracker rates on offer to the public.
The Northern Rock's longer-term borrowers, those who have had a mortgage for more than seven years, will enjoy an even lower interest rate on their home loans. Their 0.25% "loyalty" discount will push their interest rate down to 4.84%, from 1 February.
HOW MORTGAGE LENDERS RESPONDED |
|
Lender |
SVR cut since October |
SVR cut after Jan BoE decision |
New SVR rate |
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SVR: Standard Variable Rate. Latest change on 1 Feb unless stated. |
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HBOS |
2.5 |
0.25 |
4.50% |
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Nationwide BS |
2.99 |
0.5 |
3.50% |
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Abbey |
2.15 |
Under review |
4.94% |
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Lloyds TSB/C&G |
3.50 |
0.5 |
3.50% |
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Northern Rock |
2.40 |
0.25 |
5.09% |
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Barclays |
1.65 |
Under review |
5.49% |
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RBS |
3.00 |
0.25 |
4.19% |
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HSBC |
2.31 |
0.5 |
3.94% |
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Alliance & Leicester |
1.85 |
Under review |
5.34% |
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Bradford & Bingley |
2.75 |
Under review |
4.84% |
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Bristol & West |
3.10 |
0.5 |
3.99% |
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Britannia BS |
1.81 |
Under review |
4.99% |
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Yorkshire BS |
1.91 |
Under review |
4.99% |
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GE Money |
1.95 |
Under review |
8.44% |
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Coventry BS |
2.10 |
Under review |
4.99% |
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Standard Life |
1.30 |
Under review |
5.79% |
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Clydesdale & Yorkshire |
2.15 |
Under review |
5.14% |
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Chelsea BS |
1.15 |
Under review |
5.79% |
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Skipton |
1.95 |
0.5 |
4.50% |
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One Account (RBS) |
2.70 |
0.20 |
4.35% |
Article appears on www.bbc.co.uk | | |
