NatWest and the Royal Bank of Scotland (RBS) have announced that they will work to ensure that the needs of both savers and borrowers are met following this week’s base rate reduction.
The lenders stated that customers on tracker mortgages will benefit “in full” from the cut, which may free up funds to be used as part of a debt management plan.
And the banks revealed that any reduction made to savings rates will be less than 0.2 per cent on average, while many will be maintained at their current level.
“It is more important than ever to consider both our savings and mortgage customers when determining any rate changes,” commented RBS Retail Banking chief executive Paul Geddes.
He noted that the numerous interest rates cuts made by the Bank of England in recent months have had a “significant impact” on savings rates.
The Building Societies Association has warned that this may have a knock-on effect on mortgage lending, as the funds held by financial institutions may be restricted.
By Jamie Price