Alliance & Leicester have announced that they will be passing on the Bank of England’s 0.25 per cent rate cut to their own standard variable mortgage rate.
This will take their rate to 6.59 per cent, which will be in effect as of August 15th for new borrowers, and from September 2nd for existing ones.
Many leading lenders reacted to the Bank of England's decision to cut rates almost immediately.
Others are slower on the uptake but it is looking likely that the majority of mortgage providers will follow suit.
"It seems that nobody wants to pass on less than the full 0.25 per cent and risk upsetting their customer base," says Darren Cook, Head of Mortgages at Moneyfacts.
"If (customers) feel they are not now receiving a competitive rate, they will find plenty of other institutions who will welcome their custom," adds Rachel Thrussell of the same company.
The reaction of lenders has been compliant with patterns in previous years when the Bank of England has decided to reduce the Base Rate.
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