Banks start to lower mortgage rates

It appears that debt help may be on its way for many borrowers as banks and building societies began to cut rates in line with the Bank of England’s decision to lower the central figure to 4.5 per cent.

Woolwich, part of the Barclays group, has reduced its standard variable rate by 0.5 per cent to reflect the monetary policy committee’s move.

In addition, borrowers on base rate tracker deals will see the reduction come into effect on November 1st and new customers will benefit from cheaper offers.

Head of mortgages Andy Gray said that the measure will be welcomed by millions of people, commenting: “It will instill confidence, helping customers with their finances.”

Royal Bank of Scotland and NatWest also announced that they would be passing the full rate cut onto customers.

Standard variable products will be slashed from 7.19 per cent to 6.69 per cent, effective from November 1st for existing agreements.

By Jamie Price