Lenders cut mortgage interest rates

Published: April 29, 2008

Natwest and Royal Bank of Scotland (RBS) have announced reductions to some of their mortgage interest rates.

All new fixed-rate mortgages and tracker-rate mortgages are to have their interest rates cut by at least 0.10 per cent.

Some are set for larger cuts, with reductions of up to 0.30 per cent coming into force from April 30th when a mortgage is taken out in-branch.

"Whilst 2008 has seen a shrinking mortgage market, we have actually increased the amount we have lent by 18 per cent and plan to continue this trend for the rest of the year," said Paul Geddes from RBS.

"Today we are launching two initiatives to build on this - one to help borrowers looking for a new mortgage and the other for those saving for the deposit on their first home.

"In these uncertain times, we are giving practical support by providing lower rates on all our new fixed and tracker mortgages," he added.

Mortgage borrowers were boosted in April by a cut to the base rate of interest.