Big lenders cut mortage rates

THE UK's biggest mortgage lenders were quick to announce they would be passing on today's interest rate cut in full.

THE UK's biggest mortgage lenders were quick to announce they would be passing on today's interest rate cut in full.

Halifax, Nationwide, Abbey and Royal Bank of Scotland/NatWest all said they would be cutting their standard variable rates by 0.25 per cent within seconds of the Bank of England's Monetary Policy Committee (MPC) making its announcement.

Lloyds TSB, which also offers mortgages under the Cheltenham & Gloucester brand, Barclays' mortgage arm the Woolwich, HSBC and first direct are also reducing their rates by a quarter-point, having said they would mirror the MPC's move ahead of its announcement.

Lenders' decisions to shave rates by a quarter-point will reduce monthly repayments on a typical £100,000 mortgage by around £16 a month to £722.80, based on a new rate of 7.25pc .

Those who are heavily mortgaged with a home loan of £250,000 will see around £40 knocked off their monthly repayments.