Skipton to cut mortgage rate

2:23pm Friday 9th January 2009

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The Skipton Building Society says it will cut its standard variable mortgage rate by the full 0.5 per cent within 30 days, taking it from 5 per cent to 4.5 per cent.

The move follows the Bank of England’s per cent reduction in the minimum lending rate to 1.5 per cent – the lowest rate in its history.

Many lenders have continued to sit on their hands, with only four other groups so far announcing plans to pass on the interest rate cut to their variable rate borrowers.

Among those who have so far failed to say if they will be reducing their standard variable rate (SVR) are nationalised banks Northern Rock and Bradford & Bingley, and Royal Bank of Scotland, in which the Government holds a majority stake.

Only HSBC, Lloyds TSB and Nationwide have joined the Skipton Building Society to pass on the full 0.5 per cent reduction, with Britain’s biggest mortgage lender Halifax reducing its SVR by 0.25 per cent.