Lenders reveal mortgage rate intentions

Many of the UK’s leading mortgage lenders have announced their intention to reduce the interest levels on their standard variable rate (SVR) deals, according to a report from Moneyfacts.co.uk.

The price comparison firm has made clear that 57 lenders around the country have cut the rates associated with their SVRs, however, many people looking to become debt free may be disappointed to learn that eight companies have made reductions that do not reflect the fall in the base rate.

By early next month, many households will see their debt management problems eased slightly when the SVR rate reductions come into effect but for others the issues look set to continue.

“Many of the big lenders were uncharacteristically quick off the mark to announce their intentions,” said Michelle Slade, analyst at Moneyfacts.co.uk.

“However, on closer inspection, none of the top five biggest lenders has any current mortgage products linked to SVR.”

It was revealed recently that the Bank of England’s monetary policy committee voted unanimously to reduce the base rate of interest earlier this month.