Lenders cut rates

Published: April 11, 2008

The UK's largest mortgage lenders have reduced their mortgage interest rates in line with the reduction to the base rate of interest.

Members of the Bank of England's Monetary Policy Committee (MPC) voted yesterday (April 10th) to reduce interest rates from 5.25 per cent to five per cent.

As a result, the Co-operative Bank, the Royal Bank of Scotland, Natwest, First Direct and Nationwide have all reduced their mortgage interest rates by 0.25 per cent.

GE Money Home Lending has gone further, reducing rates on some of its buy-to-let mortgages by up to 0.45 per cent.

Commenting on the large reduction, Gerry Bell, head of mortgage marketing at GE Money Home Lending, said that the firm wants to remain a key player in the buy-to-let mortgage market.

"The buy-to-let sector is a significant part of the mortgage market and we are committed to strengthening our presence there," he commented.

"At a time when many lenders are increasing their rates, ourfinancial strength enables us to offer improved deals for borrowers and brokers," continued Mr Bell.

The base rate of interest is now at its lowest level since January 2007.