9 Jan

Banks confirm mortgage rate cuts

Banks confirm mortgage rate cuts

Halifax has confirmed that it is to pass on in full yesterday's base rate cut to its tracker customers.

The bank is to apply the 0.5 per cent reduction from February 1st.

It is also reducing its standard variable rate (SVR), although not by the full amount.

This will be trimmed by 0.25 per cent from 4.75 per cent to 4.5 per cent.

Abbey has also confirmed that trackers will benefit from the full cut, while its new customer tracker rate and SVR are under review.

Earlier this week the Council of Mortgage Lenders stated that many tracker customers could miss out on the full reduction due to some deals having floor rates that limit how low repayments can fall.

The move by the Bank of England yesterday takes the base rate to 1.5 per cent, the lowest in its 315-year history.

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