Northern Rock ignores Government Urges

Northern Rock the fully Nationalized Bank ignored the government and only past on 0.5 percent of last week’s 1 percent base interest rate cut by the Bank of England Monetary Policy Committee.

Existing Northern Rock customers who are on tracker mortgages that are pegged to the Bank of England rate will benefit from the full 1 percent rate cut.

Northern Rock Standard Variable Rate (SVR) is now at 5.34 percent after the 0.5 percent rate cut to the dismay of many customers.

However the Nationalized band said that it had given careful consideration to both savers and borrowers when it reviewed its rates.

Northern Rock did cut its SVR by 1.5 percent when the Bank of England cut the base interest rate by the same amount, although it is worth noting that Northern Rocks SVR was at relatively high at 7.34 percent before the cuts were made.

Source: BBC