Mortgage lenders announce rates cuts

15 July 2003
The UK's two biggest mortgage lenders - Abbey National and Halifax - have announced cuts to their mortgage rates.

Following last week's decision by the Bank of England Monetary Policy Committee to introduce a quarter point cut to the interest rate, several leading financial services companies have announced that they are passing the savings on to customers.

So far Barclays, Woolwich, Sainsbury's Bank, Cheltenham & Gloucester, and The One Account passed on the full cut to customers.

Northern Rock has lowered its rate by 0.2 per cent from 5.69 per cent to 5.49 per cent.

Abbey National has announced that it is slashing rates by the full 0.25 per cent, while Halifax opted for a more frugal 0.15 per cent cut.

Abbey National has now dropped its standard variable rate from 5.79 per cent to 5.54 per cent and Halifax, the country's biggest mortgage lender, cut its standard rate from 5.15 per cent to 5 per cent.

However, Halifax customers on tracker mortgages will get the full 0.25 per cent reduction.

The current rate of interest stands at 3.5 per cent, the lowest since 1955, and aims to spur the economy and the housing market.