Mortgage rates will be cut after the Bank of England reduced the base rate to 0.5 per cent.
Cheltenham & Gloucester and Lloyds TSB announced that its standard variable rate (SVR) will receive the full 0.5 per cent cut.
This will drop it down to 2.5 per cent.
Stephen Noakes, commercial director for Cheltenham & Gloucester, said that the market has bottomed out for fixed rates, “give or take a little movement”, and advised lenders to try to get into a fixed-rate deal. “Even those who may currently be sat on a record low SVR should weigh up the immediate bonus it offers versus the longer term savings a five or ten year fix will secure,” he said.
Abbey mortgages are also having rate cuts, with the SVR being decreased by 0.45 per cent and existing variable rate deals cut by 0.5 per cent.
As with Lloyds and Cheltenham & Gloucester, the reductions will be made from the beginning of April.

This entry was posted on Tuesday, March 31st, 2009 at 1:57 pm and is filed under Mortgage Rates. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.