Northern Rock update: SVR is now 5.84 percent

Northern Rock joined a list of other banks and reduced its Standard Variable mortgage rate by the full 1.5 percent from 7.34 percent to 5.84 percent; this change will be effective from the first of December for all customers on existing Tracker Mortgage rate products.

The move came after the Bank of England cut its Base Interest Rate by 1.5 percent on Thursday, Northern Rock followed Lloyds TSB, Abbey, NatWest, Royal Bank of Scotland, Bradford and Bingley and HBOS in passing the full interest rate cut on.

If you are a borrower at Northern Rock and your loan qualifies for loyalty discount which comes into effect after seven years you new Loyalty Rate will e 5.59 percent which is an extra 0.25 percent off of the Northern Rock SVR this rate change will also be effective from December.

Savers with Northern Rock will not see any change with their saving rates, they are under review and in accordance with its Saving Pledge, and the lender will inform its savers who hold SVR saving accounts if and when there is a rate change.

Source: FTAdviser