www.iva.co.uk

Well the BOE could cut rates again today. If your not sure how your lender might respond this is how the banks responded to the last cut.

Lender SVR before BoE decision SVR after BoE decision Rate change (percentage points)
HBOS 6.50% 5.00% -1.5
Nationwide BS 6.19% 4.69% -1.5
Abbey 6.94% 5.44% -1.5
Lloyds TSB/ C&G 6.50% 5.00% -1.5
Northern Rock 7.34% 5.84% -1.5
Barclays 6.64% Under review
RBS 6.69% 5.19% -1.5
HSBC 6.25% 5.44% (5 Dec) -0.81
Alliance & Leicester 6.94% 5.84% -1.1
Bradford & Bingley 7.09% 5.59% (7 Dec) -1.5
Bristol & West 6.59% 5.49% -1.1
Britannia BS 6.30% 5.30% -1
Yorkshire BS 6.60% 5.60% -1
GE Money 10.39% 8.44% -1.95
Coventry BS 6.84% 5.34% -1.5
Standard Life 6.59% Under review
Clydesdale & Yorkshire 6.64% 5.14% -1.5
Chelsea BS 6.94% 5.79% (31 Dec) -1.15
Skipton 6.45% 5.95% -0.5
SVR: Standard Variable Rate. All changes on 1 December unless stated.

http://news.bbc.co.uk/1/hi/business/7763546.stm

My building society C&G (owned by Lloyds TSB )issued a statement via its web site pledging to pass on interest rates in full. Its also one of the lenders who do not have a "collar". This has come into play (in the small print) with those who have a tracker or standard variable check your lender out on line. Basically its a lower limit which if interest rates hit this collar then they dont have to pass on cut.

I must thank Melanie Giles who thought it best for me to stay on variable instead of fxing my rate when it finished in Sepetember 2008.[:I]

You may remember I posted about my mutual (The Furness) not passing on the full first cut, blaming having to set aside money to cover Bradford & Bingley. They didn't pass on in full the last one either, this time blaming Bradford & Bingley again but also the collapse of the Icelandic banks.

Here's hoping for a decent cut again today, and I suppose complaining about it is a little churlish as it has made a big difference. It will be interesting to see if they pass on the full rate increase as and when interest rates start to rise again, as eventually they must.

Regards.

every 0.5% drop saves us £25 a month so bring it on, if it drops by 1%, that means in total we will of saved £150 of the mortgage in the last few months

That's a really useful post - to see how the banks compare. Thank you for that, and let's hope there is more good news at lunchtime!

As you may have seen by now, the Bank of England has cut rates to 2% this lunchtime, a drop of another 1% taking the rate to its lowest since 1951.

Regards.

Halifax have agree to pass on the interest rate on tracker mortgage even those that have a bottom limit.

Also LLoyds are passing it on as well.

Just as well we all dont have savings

You have ask yourself, is it better to save money by putting money in a savings account or have reduced mortgage payments??? Unforunately ,we cannot have both.

With so much cuts in Mortgage rates for Trackers and SVR rates the Savings rates takes an equal battering.It will then become pointless to put money in a Bank with this slide - when you see savings rates advertised with increasingly low Gross/AER and then deducted again for the basic rate of tax. A Bank can now now give 2% saving rate as they track the base rate.

Incentive to save henceforth is NOW virtually gone - but then the spin doctors tells us now to 'SPENT NOT SAVE', and with 16 years of bewitched, drone like personal spending at BOOM times behind us why are we still walking on the same creaky plank....something is terribly wrong with the Economy since noon today.

If the rates drops further to 0.01%, that is very serious. Its not the individual at stake anymore but the whole nation - wealth generation STOPS!

Even if people are not in a debt protection plan people will find they will struggle with eminent higher taxes and NI and job cuts.Real earnings falls.

mine has dropped!! C&G have put on there website that they are passing on full 1% cut as of January 2009..great start to 2009. I am happy xx

Here is how the banks stand at the moment with the latest cut.

HOW MORTGAGE LENDERS RESPONDED
Lender SVR before Nov BoE decision SVR after Nov BoE decision Rate change (percentage points) SVR after Dec BoE decision Rate change
HBOS 6.50% 5.00% -1.5 4.75% -0.25
Nationwide BS 6.19% 4.69% -1.5 4.00% -0.69
Abbey 6.94% 5.44% -1.5 Under review
Lloyds TSB/ C&G 6.50% 5.00% -1.5 4.00% -1
Northern Rock 7.34% 5.84% -1.5 Under review
Barclays 6.64% No change 5.49% -1.15
RBS 6.69% 5.19% -1.5 Under review
HSBC 6.25% 5.44% (5 Dec) -0.81 4.44% -1
Alliance & Leicester 6.94% 5.84% -1.1 Under review
Bradford & Bingley 7.09% 5.59% (7 Dec) -1.5 Under review
Bristol & West 6.59% 5.49% -1.1 4.49% -1
Britannia BS 6.30% 5.30% -1 Under review
Yorkshire BS 6.60% 5.60% -1 Under review
GE Money 10.39% 8.44% -1.95 Under review
Coventry BS 6.84% 5.34% -1.5 Under review
Standard Life 6.59% Under review Under review
Clydesdale & Yorkshire 6.64% 5.14% -1.5 Under review
Chelsea BS 6.94% 5.79% (31 Dec) -1.15 Under review
Skipton 6.45% 5.95% -0.5 Min 5% Min -0.95
One Account (RBS) (avg) 6.55% 5.55% -1 Under review
SVR: Standard Variable Rate. All initial changes on 1 December unless stated. All the latest changes on 1 January.


http://news.bbc.co.uk/1/hi/business/7766364.stm