London, UK (PRWEB) April 10, 2009
If the Bank of England cuts the base rate on Thursday; the mortgage lender will automatically cut its standard variable mortgage rate - currently at 2.5 per cent - by the same amount on 1 May.
Existing tracker mortgage customers will also benefit from any rate cut from 1 May. The lender does not have a collar on its tracker mortgages so product rates have the potential to go to 0% if base rate continues to fall.
Since base rate began to fall in December 2007, the lender has cut its standard variable mortgage rate by the full 5.25 per cent. On a typical repayment mortgage of £150,000, this represents a monthly saving of over £460. If rates are cut by 0.5 per cent again on Thursday, customers with tracker and variable rate mortgages are set to make a further monthly saving of £37.15.
Should base rate be cut, the lender will review wholesale funding costs to see if any saving can be made on new tracker and fixed rate mortgages.
For more information:
Tel: 020 7356 1714