Barclays Mortgage arm Woolwich reduces SVR by 1.15 percent

Barclays (LON:BARC) mortgage arm Woolwich have announced they will be reducing their Standard Variable rate (SVR) by 1.15 percent to 5.49 percent following the bank of England interest rate cut today, not such a great reduction considering Woolwich did not make any cuts in November.

HSBC (LON:HSBA) have agreed they will also cut their SVR by at least 1 percent, Bristol & West also said they will reduce their SVR by at least 1 percent following the base cut.

Customers of Halifax will reap the benefits of the interest rate cut if they hold an existing tracker rate mortgage that pegs the bank of England base rate, as they have agreed to pass on the full 1 percent rate cut. Halifax did have a clause in its tracker mortgage contracts stating that they do not have to pass on any reductions if the BOE base rate reaches 3 percent.

Lloyds TSB (LON:LLOY) which are in the process of merging with HBOS were the first to announce they will be cutting their SVR to 4 percent. However as the bank states that it’s SVR will never be more than 2 percent above the base rate. Lloyds did not have an alternative.

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