Lenders react swiftly to interest rate cut

Lenders have reacted swiftly to the Bank of England announcement by passing the full impact of the interest rate cut on to homeowners.

The Halifax says its mortgage rate is now at its lowest for more than 30 years after reducing its variable rate to 6.5%.

Virgin One has also dropped mortgage rates for One account customers by the full amount to 6.70%, effective from midnight.

Scott Mowbray, marketing manager at Virgin One, said: "Once again we are cutting our rates in full with immediate effect.

Nationwide Building Society has also passed on the full impact of the Bank of England's decision with a rate drop from 6.49% to 6.24%.

That will reduce payments on a £60,000 mortgage by £12.50 a month.

The HSBC Bank will also cut its variable mortgage rate by 0.25% to 6.25% from May 1.