HSBC reduces its SVR from 6.25% to 5.44%

HSBC have finally announced they are cutting its Standard Variable rate (SVR) by 0.81 percent, down from 6.25 percent to 5.44 percent, the rate change will take place on December 5.

HSBC customers are disappointed Britain largest bank are the only bank that will not pass on the full rate cut. Reports out this week show it is almost impossible for a first time buyer to find a Tracker mortgage that works in line with the Bank of England base rate.

First Direct, HSBC’s online-only banking division will also cut its Standard Variable rate by 0.81, taking its SVR to 4.69 percent.

Many Building Societies have been criticized for not passing the full rate cut on to customers including Britannia building Society.

The only banks which passed on the full bank of England base rate cut immediately were: Royal Bank of Scotland (RBS), Lloyds TSB and Halifax which are all taking taxpayers money as part of the Governments £37 billion bail-out program.

Source: timesonline