10 Oct

Banks announce rate cuts

Banks announce rate cuts

The Bank of England's rate cut has been passed on to mortgage customers by some major high street banks.

Following the announcement on Wednesday that the base rate was being lowered by 0.5 per cent to 4.5 per cent, Barclays, the Royal Bank of Scotland (RBS) and NatWest said they would pass on the rate cut in full.

Barclays subsidiary Woolwich will apply the reduction to existing standard variable rate and tracker mortgages from November 1st, while new customers are able to access the lowered rate now.

Woolwich head of mortgages Andy Gray commented: "Today's move to reduce mortgage payments is good news and will instil confidence, helping customers with their finances."

NatWest and RBS also said the changes will apply from the start of next month.

The Bank of England's move this week means the base rate is now at its lowest level since August 2006.

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