Banks to cut interest rates
Pressure from the Government on the Banks is finally starting to pay off. The main mortgage lenders have started to respond to the demand that they should cut their mortgage lending rates. The Nationwide, HBOS, Royal Bank of Scotland, Natwest and the Northern Rock will cut their main variable lending rates by the full 1.5% on 1 December.
Other Banks including Lloyds, Cheltenham and Gloucester and Bradford and Bingley have already announced that they will be passing on the rate cut in full. Not surprising these were the first to make the move as they are the ones that are either part-owned by the Government or have received some funding to help shore up their balance sheets.
Such a significant cut is great news for those borrowers who have a variable rate or tracker mortgage deal. Plus those that are coming to the end of a fixed rate mortgage will hopefully be able to find a better deal to help keep costs down.
Tags: bradford and bingley, C&G, hbos, Lloyds, nationwide, Natwest, Northern Rock, Royal Bank of Scotland
