Following a surprise announcement by government officials relating to the base rate a number of major lenders have cut theier mortgage interest rates on variable rate products. Gordon Brown and Alistair Darling announced earlier this week that the base rate was being cut by 0.5% following a special meeting just one day ahead of the scheduled Monetary Policy Committee meeting, where the interest rate is normally decided.
Lenders have now said that they will be passing on the 0.5% cut to standard variable rate mortgage loans customers, and both the banks and the government hope that the move will help to boost the economy and restore consumer confidence, as well as soften the blow if the nation does slide into a recession. From the start of November both the Halifax and Lloyds TSB will be cutting their SVRs by 0.5%.
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