Lenders Drop Rates
Published on Tuesday 11 November 2008
Two of the UK's larger mortgage lenders have joined the growing group of providers who are passing on interest rate cuts to customers.
Coventry Building Society joined Clydesdale and Yorkshire Bank in announcing it would pass on the Bank rate reduction in full.
On Monday, both announced they would make a 1.5 percentage point cut to standard variable rate (SVR) customers.
The Bank rate was slashed to 3% by the Bank of England on Thursday.
Coventry's SVR will drop from 6.84% to 5.34% on 1 December, while Clydesdale and Yorkshire's SVR will dip to 5.14% on the same day.
A group of the UK's biggest lenders announced on Friday that they would be passing on the Bank rate cut in full to SVR customers, although there are fears that interest rates on savings will also fall.
Since the Bank's announcement, a swathe of tracker mortgage deals for new customers have been withdrawn. They are expected to be re-priced and put on the market again later this week.