Mortgage lenders match rate cut

Major mortgage suppliers have got been speedy to denote that they will go through on the up-to-the-minute United Kingdom involvement charge per unit cut.

Most will wait until early March to cut standard variable rates in line with the 0.25% alkali charge per unit reduction.

Halifax, Nationwide, Abbey, Royal Depository Financial Institution of Scotland/NatWest and Lloyds TSB all said they would go through on the involvement charge per unit cut in full.

A £100,000 refund mortgage would be £15 a calendar month cheaper, said the Council of Mortgage Lenders (CML).

But the CML warned borrowers not to anticipate an automatic cut in standard variable and price reduction rates across the market.

"Lenders' rate-setting policies are more than composite than simply the degree of the alkali rate," said Michael Coogan, director-general of the CML.

"They are determined by a scope of factors including the cost of retail support and the cost and handiness of wholesale funding."

Cuts in March

Halifax, Nationwide, NatWest, Abbey and Lloyds TSB will all go through on the cuts to clients on 1 March. HSBC said it would do the cut on 7 March.

But First Direct states it is cutting its charge per unit from 6.5% to 6.25% with contiguous consequence for all its variable charge per unit mortgage clients and new customers.

The cuts are in crisp direct contrast to the last charge per unit autumn in December, after which a 5th of loaners - mainly little trading operations - failed to go through on the 0.25% cut in full.

More than a twelve loaners have got increased their tracker mortgage rates for new borrowers since the beginning of the year, despite alkali rates remaining unchanged until now.

Interest rates will also be cut for rescuers - although Kaupthing Edge, an Icelandic depository financial institution new to the United Kingdom retail market, said it was retaining its 6.5% AER nest egg rate.

Peter Bolton King, main executive director at the National Association of Estate Agents, said: "There is a serious deficiency of assurance in the marketplace at the minute and I sincerely trust that the up-to-the-minute involvement charge per unit cut will help."