What Mortgage Rate will you pay? Bank Rate slashed to 3 percent on 100 Mortgages

November 6. The Bank of England cut the interest rate by 1.5 percent, but will your bank pass the rate on? HSBC have said earlier this week that is was unlikely to pass the full rate cut onto its customers.

However HSBC, Barclays, NatWest, Royal Bank of Scotland (RBS) and Nationwide have all now announced that they are in reviewing their standard variable rates (SVR). Lloyds TSB who also owns C&G have taken their SVR down the full 1.5 percent due to a term in its mortgage contract that states it can never be more than 2 percent above the official Bank rate.

Three large banks withdrew their Tracker products last night in anticipation for the rate cut today, the banks that withdrew their Trackers were Barclays, Woolwich division, Northern Rock who were nationalized by the UK government this year and Lloyds TSB and its Cheltenham & Gloucester mortgage division.

The cut will only benefit customers who are on the banks SVR or on a Tracker mortgage deal. Depending on the deal you have with you bank and how much of the interest rate cut the bank with pass on to its customers will determine how much your monthly mortgage payment will be reduced.
You can find several mortgage calculators on the internet to help you with this, and most of the big banks main website will also provide you with a mortgage calculator.

Source: thisismoney

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